TOWARDS A EUROPEAN DIGITAL CURRENCY. THE EURO 2.0

Abstract

The possibility of Central Banks issuing digital money (CBDC) is currently under discussion. The European Central Bank presented a report on October 2, 2020, on the issuance of a digital euro in the Eurozone. It is a way to respond to the growing interest in cryptocurrencies, as well as to assess a possible new management and economic control mechanism. However, its advantages do not entirely dispel the doubts it still generates. This article attempts, on the one hand, to explain what a CBDC is, traditionally confused with other instruments arising from economic digitalization; and on the other hand, to study the implications of a European CBDC or digital euro, considering the possible legal bases available under the primary law of the European Union. This paper will end by studying the consequences that may arise from the implementation of the digital euro in three areas: monetary and fiscal policy, the payment system, and the very survival of cash.