Five success factors for the establishment of the digital euro

The digital euro is intended to strengthen European sovereignty and independence in payments. Policymakers are therefore keen to introduce it swiftly. However, high complexity and unclear priorities risk undermining these objectives.

There is a danger that implementation will be slow, uncoordinated and misaligned with the needs of citizens and businesses. The Council and the European Parliament now have an opportunity to change course. 

To achieve this, there are five success factors:

1. Simplify its design: Avoid requirements with an unclear cost–benefit ratio.
2. Adopt a phased approach: The legislator must allow the Eurosystem and banks to limit risks.
3. Take account of existing solutions: Incorporate successful national and European solutions into the policy strategy.
4. Balance roles effectively: Reduce role conflicts within the Eurosystem and preserve innovative capacity over the long term.
5. Ensure economic incentives: Align the fee model with economic principles so the digital euro is accepted by businesses and remains successful in the long term.