Roland Broemel: "Even the possibility of using a digital euro brings advantages" (Tagesschau24)

The EU Commission's draft law has created the legal framework for the introduction of a digital euro. But what opportunities does this open up for consumers? In an interview with Tagesschau24, Prof. Roland Broemel summarizes for whom the digital euro could be of interest. Broemel sees advantages in the possibility of use alone.

„The digital euro is a secure means of payment,“ Broemel said, because the claim is directly against the central bank and not against financial intermediaries. That creates trust. In addition, he said, the digital euro provides an infrastructure for implementing payments that is for the general good. In Broemel's view, the digital euro is therefore of interest to consumers who want to use less data-intensive means of payment in e-commerce, or cash-savvy individuals who want to pay digitally in an uncomplicated way. In addition, users could use it to make themselves independent of large corporations or specific digital ecosystems. „The mere possibility of using the digital euro will mean that other alternatives on the market will not be too far away from these possibilities,“ Broemel is convinced.

There may be significant differences between the different variants of digital central bank money in this regard, Broemel continued. Compared to the Chinese model, for example, the digital euro would involve the collection of significantly less data. Digital central bank money could be used for different purposes, such as being used for many large payments or more for smaller ones, he said. „It depends on the design whether the digital central bank money should be more of a store of value or a means of payment, or how much intermediaries are involved,“ Broemel said.

Tagesschau24, Update Wirtschaft vom 29.06.23 (starts at 8:00)