The manager ensures that the digital euro does not seek to replace cash, but complement it.
Nagel says that people already understand the need for a digital euro.
The president of the Central Bank of Germany, Joachim Nagel, stressed the importance of the digital euro as a vital project for the independence of Europe in digital transactions.
During one Round table in the New Economy forum in Madrid. Nagel said that the digital euro, the digital currency of the European Central Bank (ECB), will not replace the cash, but will complement it, offering greater privacy and lower costs compared to private solutions.
“I only see winners and not losers in this project,” he said, stressing that recent geopolitical tensions have increased public understanding about the need for this Central Bank digital currency (CBDC).
The ECB estimates that the digital euro could be operational between 2027 and 2028, after years of development and evidence. As promised, The digital euro will reduce Europe of suppliers of technological services, mainly Americans, who dominate the digital payment market.
Nagel emphasized that most of these companies are not based in Europe, which raises risks for the financial autonomy of the continent. “The digital euro is a central project for the independence of Europe in payment transactions,” he said, urging all sectors to support their development.
The digital euro is in full development
The ECB, based in Frankfurt, Germany, has advanced in the preparatory phase, initiated in November 2023, which includes technical evidence and consultations with actors in the financial sector. This stage will be extended until 2025, When it will be decided if the implementation is carried out.
As cryptooticias has reported, the project has added 70 allies, including startups, merchants, fintechs, banks and payment service providers. However, the initiative does not dissipate the fears of the community. Some allies express concerns about privacy, interoperability with existing systems and the impact on the traditional financial sector. Despite the support, The ECB faces the challenge of generating confidence in a diverse ecosystemwhere expectations and needs vary among participants.
The opposition to the digital euro is also significant, especially among cryptocurrency and analysts. The expert Marc Vidal has warned that the CBDC could become the largest financial control system in history, allowing detailed monitoring of transactions. These criticisms reflect the skepticism of a community that values decentralization and privacy offered by cryptocurrencies, and especially Bitcoin (BTC).
Detractors fear that the digital euro, being managed by the ECB, can limit the financial freedom of citizens, Despite Nagel’s guarantees about his approach to privacy. This, remembering that CBDC, being controlled by central banks, could facilitate unprecedented financial surveillance, allowing governments to monitor and, potentially, restrict citizens’ transactions.
In addition, the existence of Bitcoin, a decentralized and censorship alternative, calls into question the need for a CBDC such as the digital euro. Bitcoin has proven effective as a method of payment and reserve of value, operating outside government control, which makes it attractive for those who prioritize financial freedom. However, legislators, developers, banks and governments seem to prefer the digital euro because it perpetuates the traditional financial system, maintaining their authority over monetary policy and economic flows. This preference could reflect an interest in preserving control over the economy, instead of adopting a model that challenges existing power structures, as Bitcoin does.
As the ECB advances, the challenges persist. Mass adoption requires not only technical infrastructure, but also financial education so that citizens understand the benefits and limitations of the digital euro.
The opposition of critical sectors, combined with the expectations of the allies, Testing the capacity of the ECB to build consensus. Meanwhile, the project continues its course, with the goal of positioning Europe as leader in sovereign digital payments, in a world where financial technology redefines the rules of the game.
