The Digital Euro: technological foundations, geopolitical impact and integration in payment systems

The concept of a Digital Euro as a form of public digital money is grounded in the idea that design choices and institutional arrangements will shape its influence on the payments landscape and the wider financial system. Adopting a comprehensive approach that draws on technological, economic and governance perspectives, this analysis investigates how a Digital Euro could impact payment efficiency, accessibility, privacy, financial intermediation and cross-border interactions. It maps the principal tensions and trade-offs between public policy goals, market incentives and technical constraints, and explores the options available to policymakers and market participants for aligning technological possibilities with societal objectives. The analysis aims to provide a clear framework for understanding the strategic decisions that will determine the Digital Euro’s role in an increasingly digital monetary environment.