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Monetary Policy

The digital euro: the key questions answered

Explainer: The ECB is preparing for a possible digital euro as a complement to cash.

By the editors15 October 20265 min read

The ECB is preparing for a possible digital euro as a complement to cash.

Anyone looking into “The digital euro” quickly encounters a wealth of figures and opinions. For a sober assessment it pays to go to primary sources: official statistics, publications from the responsible authorities and companies' own reports.

The key is to separate short-term swings from structural developments. Individual monthly readings can be distorted by one-off effects; trends over several quarters are more telling.

For executives, the main question regarding “The digital euro” is their own exposure: which costs, revenues and financing conditions depend on it, directly or indirectly?

A proven approach is to run scenarios and monitor leading indicators regularly. That puts decisions on a solid footing without reacting to every headline.