Related papers: Digital Euro: Frequently Asked Questions Revisited

Digital Euro: Frequently Asked Questions Revisited

URL: http://arxiv.org/abs/2601.18644v1
Date: Mon, 26 Jan 2026 16:14:26 GMT
Title: Digital Euro: Frequently Asked Questions Revisited
Authors: Joe Cannataci, Benjamin Fehrensen, Mikolai Gütschow, Özgür Kesim, Bernd Lucke,
Abstract summary: The European Central Bank is working on the "digital euro", an envisioned retail central bank digital currency for the Euro area.<n>We take a closer look at the "digital euro FAQ", which provides answers to 26 frequently asked questions about the digital euro.<n>We question the provided answers based on our analysis of the current design in terms of privacy, technical feasibility, risks, costs and utility.
Score: 0.0
License: http://creativecommons.org/licenses/by/4.0/
Abstract: The European Central Bank (ECB) is working on the "digital euro", an envisioned retail central bank digital currency for the Euro area. In this article, we take a closer look at the "digital euro FAQ", which provides answers to 26 frequently asked questions about the digital euro, and other published documents by the ECB on the topic. We question the provided answers based on our analysis of the current design in terms of privacy, technical feasibility, risks, costs and utility. In particular, we discuss the following key findings: (KF1) Central monitoring of all online digital euro transactions by the ECB threatens privacy even more than contemporary digital payment methods with segregated account databases. (KF2) The ECB's envisioned concept of a secure offline version of the digital euro offering full anonymity is in strong conflict with the actual history of hardware security breaches and mathematical evidence against it. (KF3) The legal and financial liabilities for the various parties involved remain unclear. (KF4) The design lacks well-specified economic incentives for operators as well as a discussion of its economic impact on merchants. (KF5) The ECB fails to identify tangible benefits the digital euro would create for society, in particular given that the online component of the proposed infrastructure mainly duplicates existing payment systems. (KF6) The design process has been exclusionary, with critical decisions being set in stone before public consultations. Alternative and open design ideas have not even been discussed by the ECB.

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