Cash is an important part of your freedom of choice and essential for the financial inclusion of all groups in society. Our treasury strategy aims to ensure that cash remains widely available and accepted both as a means of payment and as a store of value. On these aspects, the European Commission`s document explains that the functioning of the digital euro will require the processing of personal data, including sensitive personal data, and that this processing will be carried out in full compliance with the framework of the GDPR. In addition, the European Commission document explains that the design of the digital euro aims to minimise the risk of large-scale conversion of deposits by introducing restrictions or disincentives on the use of the digital euro as a store of value. The European Commission`s Digital Finance and Retail Payments Strategies, adopted in September 2020, have already supported research into a digital euro as a possible complement to the liquid euro, which is legal tender under the Treaties and EU legislation. In addition, the ECB`s retail payments strategy pursues similar objectives. We are committed to ensuring that euro banknotes and coins are accessible to the public at all times. National central banks offer free treasury services in their countries and also strive to make the cash cycle as profitable as possible. We also take into account the needs of international markets, since 30% to 50% of euro banknotes circulate outside the euro area. And if there were a digital euro in the future, it would exist alongside cash.
The European Commission has published a Recommendation (2010/191/EU), based on a report by the Euro Expert Group on Legal Tender, which states the following on the obligation to accept cash. The provisions relating to the euro as the “single European currency” are at the heart of the Treaty on the Functioning of the European Union (TFEU) rules on Economic and Monetary Union (EMU). As the euro has replaced the former national currencies of the participating Member States and is intended to replace the national currencies of all future euro area members, it was imperative to grant the euro the status of exclusive `legal tender` in accordance with Article 128(1) TFEU. This status of the euro seems so obvious that it is self-explanatory – but only at first glance, because the concept of “legal tender” and its implications for the European Union (EU) and national private and public law are less clear. A satisfactory notion of legal tender is difficult to define and hardly exists at EU level, resulting in a glaring lack of legal certainty in a wide range of aspects of public and private law. According to the European Commission`s document, digital euro design decisions could include: The initiative aims to make the digital euro a new form of central bank money issued alongside banknotes and coins, and would also cover the essential aspects and key design functions of the digital euro that would enable the European Central Bank (ECB) to: to spend the digital euro. It should be noted that the issue of a digital euro and the decision on its technical characteristics fall within the competence of the ECB, but require its prior creation by means of an EU regulation defining its essential elements on the basis of Article 133 of the Treaty on the Functioning of the European Union (TFEU). This article provides for the establishment of `measures necessary for the use of the euro as the single currency`. In addition, further changes to the current EU legal framework may be needed to align it with the digital euro and digital currencies issued by the central banks of non-euro area Member States.
Euro banknotes are protected by the latest and most effective technologies to make them highly tamper-proof and easy to authenticate. We guarantee the authenticity and high quality of euro banknotes in circulation and apply strict standards of verification and authentication by banks and cash handlers. The European Commission`s PERICLES programme also encourages the development of safety features for a possible future revaluation of current euro unit values. Last but not least, we want the design of euro banknotes to be one that Europeans can identify with. We ensure that banknotes can be used safely by investigating the potential public health effects of the production and circulation of euro banknotes and by carrying out scientific research and testing. We also examine the environmental footprint of banknotes to identify opportunities to reduce their environmental impact through new products and processes. This will ensure that euro banknotes and their production processes become as sustainable, environmentally friendly and environmentally friendly as possible. The ECB published its Digital Euro Report in October 2020 and conducted a public consultation on the Digital Euro between October 2020 and January 2021. In July 2021 the Governing Council decided to launch an investigation phase for a digital euro project in October 2021.
Euro banknotes and coins are legal tender in the euro area and cash is the only form of public currency to which everyone has direct access. The ECB and the national central banks – also known as the Eurosystem – as well as the banking sector, have a fundamental responsibility for ensuring the right supply of cash and facilitating the use of cash in payments by individuals and businesses.