It is my pleasure to return to the European Parliament for this exchange on the digital euro.
The euro has now existed for more than a quarter of a century.
Of course, the world has changed a great deal since the euro was introduced.
Technology is evolving at a breathtaking rate, transforming the way we live, work, and interact with one another.
These changes are also reflected in how we use our currency.
More and more Europeans are choosing to pay digitally.
The share of cash payments in the euro area at the point of sale has dropped between 2019 and 2024 from 72% to 52%.
Europe needs to be at the forefront of embracing the digital age and making the most of all the opportunities that it offers.
The rest of the world is quickly adapting to these changes.
And if Europe does not, we risk being left behind.
This is what our proposal for the digital euro comes in.
A digital euro — securely issued and backed by the European Central Bank — offers the potential to modernise our payment systems, strengthen the global role of the euro, improve financial inclusion, and reinforce monetary sovereignty in the digital age.
The digital euro presents users with significant advantages and opportunities.
First, the digital euro would be a seamless means of payment usable throughout the euro area, regardless of where payers are located and which commercial bank or payment service provider they use.
Users would be able to pay anytime, everywhere across the euro area, and payments will be sent and received instantly 24/7, 365 days a year.
The digital euro would also provide for the possibility to pay digitally, even without access to the internet.
Lastly, the digital euro would also benefit merchants, who would pay lower fees for accepting digital payments.
In addition to the advantages for end users, the digital euro also brings great advantages to our sovereignty in payments.
Today, the space left behind by declining cash use is being covered by non-EU payment solutions.
We simply cannot afford to cede technological control over the EU's economy entirely to others.
As other nations develop and promote alternative digital currencies for international trade, the EU must act to ensure that the euro enhances its role as a strategic reserve currency.
A digital euro, properly executed, would reinforce this position.
Recent developments in today's more complex, conflictual world have further underlined the urgency of making progress on the introduction of the digital euro.
The digital euro can be an important pillar in strengthening the EU's strategic autonomy by increasing the euro's resilience vis-à-vis other currencies, payment systems, third country Central Bank Denominated Currencies and "stablecoins" not denominated in euro.
Now, I would like to briefly address some of the concerns that have been raised regarding the digital euro.
Firstly, for private sector payment providers and banks.
The digital euro is not intended to compete with private payment solutions, but rather to provide a complementary solution that can foster innovation and competition in the retail payments market.
The digital euro will work in close cooperation with the private sector.
Its open access standards will be made available to the private sector, enabling them to build innovative payment solutions on top of the digital euro and expand their services seamlessly across national borders within the EU.
The policy choice is not whether we promote private payments or the digital euro, but how we can foster both - as they complement each other in achieving our policy objectives, especially the autonomy of European retail payments.
The digital euro will not change the critical role that banks play in financial intermediation in our economies.
By introducing holding limits, among other safeguards, our proposal ensures that the digital euro would never jeopardise the financial stability of the EU or the intermediary function of the banks.
On privacy, I want to be very clear: Guaranteeing citizens' rights to privacy is one of the fundamental pillars of the Commission's proposal for the digital euro.
The digital euro will provide cash-like privacy in the digital world for offline payments and a high degree of privacy for online payments.
This will ensure that central banks can never identify users.
The fundamental right to privacy has been a central issue when designing the proposal for the digital euro.
The proposal therefore strikes the right balance between citizens' legitimate request for cash-like privacy in payments and the need to contain money laundering, terrorist financing and fraud risks.
On cash: The digital euro will be an additional choice for consumers.
It will complement and not replace cash.
As a sign of the Commission's determination to safeguard the right to pay in euro cash and have easy access to cash, the Commission proposed a regulation on the legal tender of euro cash alongside the digital euro proposal.
Both proposals make it clear that people will have the choice to pay in euro banknotes and coins or in digital euro.
As a final point, I am proud to say that the digital euro will be an inclusive means of payment.
Our legislative proposal includes a number of requirements to ensure accessibility for unbanked people, people with disabilities, functional limitations or limited digital skills.
In conclusion, the digital euro has the potential to provide a pan-European means of payment that is widely available and accepted throughout the euro area.
This will, in turn, promote innovation and competition, while offering an extra choice that complements cash and private payments.
We look forward to working closely with the European Parliament to make this vision a reality.
I look forward to your questions. Thank you.
