Towards the end of cash in France? Where is the digital euro project, European virtual currency

“This is the end of the freedom that the liquid offers, the possibility for the European Central Bank (ECB) to control your purchases, to potentially grasp your money, a madness! “, Exclaims, on the social network X, the president of Standing FranceNicolas Dupont-Aignan.

Hundreds of similar publications also flourish on Facebook and Tiktok in a conspiracy rhetoric. But what about? What exactly is this project ofdigital euro Who is everyone talking about? We explain to you.

The digital euro instead of parts and tickets? Not really

First of all, the possible arrival of this digital euro is not for now. And if this project goes to the end, it will not be synonymous with the end of liquid money, unlike what these viral publications on social networks happen.

“This equivalent of the ticket, in digital form, will be accessible to the general public, In addition to species and other means of payment », In particular, the Banque de France.

The digital euro will complete species and other means of payment, without replacing them. He will increase the freedom of choice of individuals, without any obligation of use.

Proof of this is if necessary, the Banque de France recently announced the construction of a new fiduciary printing in Vic-le-Comte, in Puy-de-Dôme, for an amount of more than 250 million euros. This should allow France to acquire “the most modern, efficient and ecological posts public production pole”.

And this “Eurosystem” will “never be able to see the personal information of users of the digital euro, nor to link payment information to individuals”, comments the central bank of France.

Objective displayed: “the monetary sovereignty of Europe”

Through this digital euro project, the ECB would like, she explains, give the opportunity to pay with a “secure and universally accepted means of payment throughout the euro zone”.

As for species, Digital euros payments would be free for everyone in the euro zone. Clearly displayed objective: “the monetary sovereignty of Europe”, making the European landscape of payments “more competitive and more resilient in the face of non -European payment services providers”. To put it simply, Brussels wants to reduce the dependence of Europeans to American payment systems such as Visa et Mastercard.

The explanation is quite simple: the species you have in your wallet are ECB’s currency. In fact, these tickets and parts are currently the only type of central bank currency available to the public. This currency is also called “public currency”, because it is issued by a public institution, the central bank, and is therefore guaranteed by a public institution.

But commercial banks, “also create money,” argues the ECB. This is the case when they grant you a new loan, for example, and the corresponding sum appears on your account. This type of money is called “private currency”. The balance on your account statement and your savings are also private currency.

Merchants more subject to bank card operators?

The payments you are currently making with your debit or credit card, or through an online payment service, are therefore private money transfers, created by your bank.

And you should know that today, the currency of the ECB is not accessible in digital form. This digital euro project would therefore aim to combine “the advantages of central bank currency and the simplicity with which consumers make their payments in today’s world”.

The ECB highlights the advantage of “traceable and confidential” digital Euro payments, which could reduce the risk of fraud or money laundering, explaining that this digital euro would approach a digital version of species as much as possible.

For companies and merchants, the digital euro could also represent a reduction in their costs, since they would no longer be subject to bank card operators who charge high costs on each transaction … A digital euro which would also be available online and offline.

The digital payment market is today largely dominated by extra-European actors. Visa and Mastercard cover more than 70 % of card payments in Europe. This dependence can further increase with the development of mobile payment solutions or private money projects or by the rise of cryptocurrencies. The digital euro would be a means of limiting dependence on private operators and offering a European infallible and safe European payment solution. It would constitute protection for Europe, especially in the event of a crisis, and would strengthen sovereignty in terms of payments in Europe.

The ECB and the national central banks would thus be responsible for the issue of this digital euro. It would then be distributed by commercial banks. But its use for individuals would be free. On the other hand, it could not be remunerated, neither positively nor negatively. An individual could thus have, in addition to his current account, a account in digital euros.

A digital portfolio with a maximum amount

The first step would be to create your portfolio in digital euros, via your bank or a post office. You could then feed it, from a linked bank account or by depositing species. All you have to do is make your payments using the digital euros available in your wallet, Imagine the ECB.

When you receive digital euros, you can keep them in your digital portfolio, up to a maximum amount, or deposit them on your bank account. You could choose to do it manually or automatically.

The digital euro would be a public good, such as tickets and parts, but in digital form. The digital euro would be free for basic uses, via a mobile application or a physical card. It would also be available offline, for users with a limited connection. The draft legislation presented by the European Commission provides that credit institutions distributing the digital euro would be required to provide free basic payment services in digital euros if their customers are requesting it.

But all this will not happen tomorrow. The ECB has been carrying out this project for several years. It launched a study phase in 2021, then a preparatory phase in November 2023. And it will decide on the possible issue of a digital euro, only when the corresponding legislation is adopted.

With regard to the calendar, this first phase of reflection of two years must end in October 2025, the date on which the Council of Governors of the ECB must meet to make a decision concerning the future stages.

This decision -making body could then work on the issue of a regulatory framework for the digital euro. Clearly, if it results, the introduction of The digital euro would not be done before 2027 or 2028at best. Long months of debate and distrust in perspective.

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