It already exists as a stablecoin. But the European Central Bank is also working on a digital counterpart to cash. The digital euro can take many forms and the banking industry is also toying with tokenized bank money as an independent alternative to central bank money. It is still uncertain which standard will prevail and how.
The digital euro in the political process
Kevin Spur knows what the situation is with the digital euro in the political process. He looks after digital currencies and assets for the German Savings Banks and Giro Association (DSGV). He follows the discussions at federal and EU level.
He believes that the EU elections in June could bring new impetus to the discussion. However, in his view, the topic of the digital euro is too niche to serve as an election campaign topic.
Tokenized Money: The Pros and Cons
For Spur, a digital euro from the ECB is, above all, a resilience system in the event of major failures by payment service providers from overseas. However, there are some aspects that need to be taken into account to ensure that central bank digital money does not cause more harm than good.
He therefore also finds the private sector alternatives in the form of stablecoins or tokenized bank money exciting.