The ECB’s Digital Euro and new operational framework: is there an overlap?

The European Central Bank is investing in two major projects: the creation of a digital euro and updating its operational framework. The digital currency is intended to complement banknotes and coins, adapting to the needs of European citizens and offering a common electronic payment option across the euro area. The new operational framework still needs to be finalized in important aspects to effectively implement monetary policy.

While these two initiatives are mostly discussed separately, their overlap deserves greater attention. The introduction of a central bank digital currency (CBDC), could have a significant impact on bank liquidity. It is crucial that the central bank have a framework that can respond flexibly.

This event explored the latest developments in both areas and debate the implications of their intersection.