Digital euro aims to win over skeptics

The European Union unveiled plans on Wednesday for the bloc to join central banks around the world in the move toward a digital version of the euro, in response to changing public spending behavior. But before it is even off the drawing board, the proposal is encountering resistance.

The idea was first floated in 2020 by Christine Lagarde, president of the European Central Bank, with supporters saying the new system would work in parallel to cash and allow the ECB to stand alongside other central banks, many of them non-European, that are already active in the field.

However, critics have questioned whether such a move is necessary, with banks expressing their concerns. There are also public fears over privacy regarding the traceability of transactions and the potential for prices to be pushed up.