Digital Euro Seen as Complementary Form of Money, Not a Replacement

The digital euro should be understood as an additional form of money rather than a replacement for existing payment methods, according to Senior Assistant Professor Dr. Atanas Kamelarov from the University of Economics in Varna.

He noted that even if the digital euro is introduced, most people are expected to continue using a combination of cash, bank cards, and electronic payment systems. The digital euro, a joint initiative of the European Central Bank and the euro area’s national central banks, merges features of traditional banknotes with modern electronic payment tools.

Currently, online payments rely on funds from commercial bank accounts. With the digital euro, users would be able to make electronic transactions directly using central bank-issued money. Its value would remain equivalent to existing forms of the euro, with 1 digital euro equal to 1 euro in cash or in a bank account.

Access to the digital euro would be facilitated through banks, likely via a specialized digital wallet, which could take the form of a mobile app or an integrated online banking feature.

One of the key motivations behind the project is Europe’s reliance on major American card networks such as Visa and Mastercard, which dominate the card payment sector. The digital euro could act as a European alternative, ensuring continuity in payments in the event of disruptions to international card systems, although Dr. Kamelarov emphasized that there is currently no immediate risk of such a problem.

Source: Bulgarian National Radio (BNR)