The Digital Euro: A Catalyst for Economic Recovery and Digital Transformation in the Post-Crisis Period
The Digital Euro: A Catalyst for Economic Recovery and Digital Transformation in the Post-Crisis Period

Author(s): Antonina Toncheva
Subject(s): Politics / Political Sciences, Politics, Economy, Business Economy / Management, Economic policy, EU-Approach / EU-Accession / EU-Development, Financial Markets, ICT Information and Communications Technologies
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: digital euro; Central Bank Digital Currency (CBDC); European Central Bank (ECB); monetary policy; financial inclusion; digital transformation; economic stability; payment systems; privacy; cybersecurity
Summary/Abstract: This paper examines the subject of the digital euro as a central bank digital currency (CBDC) and its role in reshaping the Eurozone's economic and financial ecosystem. The primary object is to evaluate its impact on monetary policy, financial inclusion, and the functionality of traditional banking institutions. The paper’s thesis asserts that the digital euro has the potential to enhance monetary control and accessibility while simultaneously challenging traditional banking structures. By analyzing statistical data, including a reduction of unbanked populations in the Eurozone and potential GDP growth linked to financial inclusion, the paper demonstrates how the digital euro can improve economic efficiency. Furthermore, it highlights risks for banks, such as reduced deposit holdings, and offers solutions like public-private partnerships to mitigate disruptions. These findings underscore the transformative yet challenging nature of implementing a digital euro.

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