ECB Executive Committee: Rapid action is needed to advance the digital euro project and strengthen monetary sovereignty

ECB Executive Board member Cipollone said that while central banks have long provided digital settlement of central bank currencies for wholesale transactions, we do not yet have cash in digital form. This problem is becoming increasingly prominent as the use and acceptance of cash is declining. Therefore, the European Commission has put forward a legislative proposal to ensure the acceptance of cash, and the ECB is also committed to keeping euro cash widely available and accessible. Nevertheless, the trend of reducing the use of paper money in daily transactions is likely to continue, reflecting the digitalization of economic activities and reflecting the model of many developed economies. We must act quickly to address the risks posed by Europe's current inability to ensure the integration and autonomy of its retail payment system. This is a key motivation behind the digital euro project: bringing central bank money into the digital age will provide digital currency equivalent to paper money and strengthen our monetary sovereignty. (Jinshi)