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There are only two types of euros: notes that are physical evidence of said money, and deposits in banks. You can transact by exchanging notes or by instructing

There are only two types of euros: notes that are physical evidence of said money, and deposits in banks. You can transact by exchanging notes or by instructing your bank to perform a transfer. Both have limitations with the second being that you have to involve banks in the transaction and have a bank account, etc. Digital currency has all the benefits of both methods with none of the drawbacks. No bank account required, no banks required (other than the ECB, but they are also required for bank notes), instant exchange, privacy, in person or distant transactions, etc.

guenthert 6y ago
With the prevalent, justified or not, concerns regarding tax evasion, corruption and money laundering in the EU, I very much doubt that the digital Euro will prioritize preserving privacy. I rather think of the digital Euro of an attempt to finally get rid of bank notes (large ones first) in order to curb aforementioned ills.
wcoenen 6y ago
> There are only two types of euros: notes that are physical evidence of said money, and deposits in banks. There are also "bank reserves", which is the money sitting in the accounts that banks have at the central bank. Bank reserves, unlike deposits in a commercial bank, are equivalent to notes and coins and can be thought of as the current form of the digital euro. Banks use it for settlement of transactions between them. So the idea is to make this "real" digital money directly available to individuals and companies, like physical cash.