The European Central Bank (ECB) is reinforcing the message that cash is not going away, even with the continued development of a digital euro. The ECB recognizes the enduring importance of physical money alongside the move toward digital payment solutions.

ECB Executive Board member Piero Cipollone has emphasized that cash remains crucial to the economy. Cash is not only used for everyday transactions, but also as a secure means of storing money. Despite the increasing popularity of digital payments, cash offers unique benefits such as freedom, privacy, and accessibility. The ECB aims to improve both cash and digital payment methods, rather than favoring one over the other.

Modernizing euro banknotes is a priority for the ECB. These upgrades include enhanced security features, increased durability, and improved usability for everyone, including individuals with visual impairments. The ECB's commitment to upgrading physical money ensures that cash remains a practical and accessible option for all Europeans.

The ECB is moving forward with plans to launch a digital euro, which will be a virtual form of currency backed by the central bank. The digital euro is intended to complement cash, not replace it, offering a safe, user-friendly, and universally accepted digital payment method throughout Europe. The digital euro initiative aligns with the ECB's goals to unify Europe’s capital markets.

The ECB is currently in the preparation phase for the digital euro, which is expected to last until October 2025. A decision on whether to launch the digital euro will be made after this phase, pending the completion of the European Union's legislative process. The ECB is working to finalize the digital euro scheme rulebook and select providers to develop the digital euro platform and infrastructure.

The digital euro will have both a retail version for public use and a wholesale version for financial institutions. The retail version will offer privacy protections, free transactions, and offline functionality. The wholesale version aims to streamline interbank settlements and cross-border payments.

The ECB is also exploring the possibility of an offline digital euro, which would allow payments to continue even without internet connectivity. This feature is particularly important during emergencies or in areas with unreliable internet access, where digital currency might be the primary payment method.

Concerns about privacy and the potential impact on commercial banks are being addressed by the ECB. The ECB is committed to strong privacy standards and is exploring blockchain technologies like Ethereum to underpin the digital euro. The ECB is also engaging with about 70 private-sector organizations through an 'innovation platform' to develop innovative digital payment features and services.

The ECB is also working to address concerns about the potential impact of the digital euro on financial stability. To prevent destabilization, the ECB would likely limit the amount of digital euros users can hold.

The ECB's commitment to both cash and the digital euro reflects its dedication to providing secure, efficient, and inclusive payment options for all Europeans. By supporting both forms of currency, the ECB aims to guarantee that people can always choose to pay with public money, now and in the future.