Understanding the ECB’s Digital Euro and its financial implications

A recent article authored by Dorina Mastora, Deputy Compliance Officer at Elias Neocleous & Co LLC, and published in the Sunday edition of the Cyprus Mail explores the European Central Bank’s (ECB) Digital Euro, a centralised digital currency set to complement traditional cash within the European Union (EU).

The ECB’s Governing Council has entered the Digital Euro Preparation Phase, emphasizing comprehensive testing across design, user experience, privacy, financial inclusivity, and ecological sustainability. The article examines how the initiative aims to enhance cross-border transactions, inclusivity, security, privacy, and reduce transactional costs; and sheds light on the digital currency’s implementation, ranging from a specialized digital euro app to integration with existing banking applications. The article also touches on the ECB’s proactive approach to potential impacts on the banking system by establishing maximum balance thresholds for digital euro usage.

A pdf copy of the full article can be accessed here.

For additional information, please don’t hesitate to contact Dorina Mastora.