Minister of Finance Mart Võrklaev states that this would mean the introduction of a new digital means of payment, existing alongside cash, which would enable people and businesses to make payments at any time and anywhere across the euro area.
‘The option to pay with the digital euro would be available in online environments, stores, points of sale and elsewhere. The service could be used, for example, via a smartphone app, even without an internet connection,’ he explained. ‘Offline use provides an opportunity to increase the reliability of digital payments in various crisis situations and also reduces the need for cash, which is one of its main benefits.’
‘In principle, Estonia supports the concept of the digital euro, however, the European Union’s institutions must first thoroughly assess all the legal and economic implications and risks, particularly those related to money laundering and terrorism financing,’ noted Evelyn Liivamägi, Deputy Secretary General for Financial and Tax Policy of the Ministry of Finance. ‘Once the legal framework is in place, the final decision on issuance will be made by the central banks,’ she added.
The European Central Bank has been analysing the aspects related to the digital euro for over two years with the aim of moving forward to the preparation and testing phase. The development of the digital euro is expected to take around three years. The Central Bank will be able to make a decision on the introduction of the digital means of payment once the Council and Parliament have adopted the legal framework for the introduction of the digital euro.
Digital solutions are increasingly shaping people’s lives in Europe, as payments are increasingly made through digital channels and the use of cash is decreasing. In order to support the economy of the European Union, it is necessary to be ready for the introduction of a digital means of payment that would work in parallel with cash.
The digital euro:
· complements cash and private sector payment solutions;
· supports innovation and the digitalisation of the EU economy;
· avoids risks associated with unregulated payment solutions;
· strengthens the international role of the euro and the strategic autonomy of the EU;
· promotes financial inclusion by increasing choice, competition and accessibility of digital payments.
