The European Central Bank (ECB) has announced its support for the EU’s legislative process to introduce central bank digital currencies (CBDCs) for both retail and wholesale use. The move signals that the digital euro project is entering a more advanced phase within the European Union.
However, the retail version continues to face strong opposition from commercial banks and some policymakers, who warn of potential risks to the traditional banking system, data privacy, and financial stability.
Meanwhile, the wholesale CBDC — aimed at interbank settlements — is receiving broader institutional support, as it promises greater efficiency and lower transaction costs in cross-border payments.
