UniCredit CEO Andrea Orcel recently expressed his support for the digital euro, emphasizing the importance of banks maintaining their central role in its implementation and operation. He believes that the success of the digital euro hinges on financial lenders playing a key part in the flow of money, describing the launch of the digital currency as a matter of sovereignty for Europe.
During a conference organized by Mediobanca, Orcel stated that if banks are fully integrated into the digital euro system, where customers have the option of using cash or digital currency seamlessly, it would be very beneficial for Europe and the banking sector. This sentiment was echoed by ECB Executive Board member Piero Cipollone, who mentioned that commercial banks would be responsible for providing digital euro services. Consumers would enjoy free services, while merchants and service providers might face associated fees. The exact fee structure and details of how consumer banks would receive fees from merchant banks have not been disclosed yet.
At a Money20/20 event, Evelien Witlox, the digital euro director at the European Central Bank, discussed the cautious approach the ECB plans to take in introducing the digital euro. Despite the decline in cash usage and the rise of alternative currencies and digital payments, the ECB wants to ensure a smooth transition to the digital euro. If issued, the digital euro would become legal tender, allowing the general public to use central bank money for their everyday transactions. Merchants offering digital payment options would be required to accept the digital euro, providing a potential benefit for citizens.
The European Central Bank aims to launch the digital euro to enhance the resilience of the euro area and support Europe’s strategic autonomy and monetary sovereignty. While the launch is still a few years away, discussions are ongoing regarding how banks will integrate digital euro services and the implications for the evolving business models of the banking sector. Maintaining banks’ crucial role in the digital euro system is seen as vital for its success and the overall stability of the financial sector.
In conclusion, the endorsement of the digital euro by UniCredit CEO Andrea Orcel underscores the importance of banks in the implementation of the digital currency. As discussions and preparations continue for the launch of the digital euro, ensuring that banks are fully integrated into the system will be key to its success. The digital euro has the potential to offer significant benefits to both consumers and merchants, providing a seamless and efficient way to conduct transactions in the digital age.