The Digital Euro—Just a Digital Form of Cash?

For years, the European Central Bank has analysed the potential of broadening the monetary basis in European economies through its Digital Euro project. It regards a Digital monetary anchor also as a countermeasure against declining public demand for cash in most Euro area countries that impedes the transmission of monetary policy and has the potential to harm financial system stability. The article provides a brief overview of the historic Digital Euro project development, introduces the current project status and European directive draft on the Digital Euro and evaluates project results made from an economic perspective.