Fabio Panetta, a member of the European Central Bank (ECB) Executive Board, has highlighted the increasing importance of digital currency as cash usage continues to wane. He pointed out that while central banks have long offered digital settlement options for wholesale transactions, a digital version of cash has yet to be introduced. This gap is becoming increasingly critical as the reliance on physical cash diminishes.

In response to this trend, the European Commission has proposed legislation aimed at ensuring cash acceptance, while the ECB remains dedicated to preserving the accessibility and availability of euro cash. However, the decline in cash transactions is expected to continue, reflecting broader digitalization trends observed in many developed economies.

Panetta underscored the urgency of addressing the risks stemming from Europe’s current inability to secure the integration and autonomy of its retail payment systems. This concern drives the motivation behind the digital euro project, which seeks to modernize central bank money, offering a digital currency equivalent to physical cash and reinforcing monetary sovereignty across the region.