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UniCredit CEO Andrea Orcel has expressed his support for a digital euro, provided that banks retain their central role in its implementation and operation.
Digital Euro and Its Implications
The digital euro could be a “very good” development if financial lenders maintain their central role, according to UniCredit CEO Andrea Orcel. Speaking at a conference organized by Mediobanca, Orcel stressed that the success of the digital euro depends on maintaining banks’ integral position in the flow of money. He labeled the digital currency’s launch as a “matter of sovereignty for Europe.”
The European Central Bank (ECB) aims to launch the digital euro to strengthen the euro area and support Europe’s strategic autonomy and monetary sovereignty. Although the launch is still years away, discussions continue on how banks will integrate digital euro services, affecting the sector’s evolving business models.
“I think the question is how it will happen: … are banks going to be the infrastructure and the framework for a digital euro like they are for the cash euro? If banks are fully integrated, i.e. ‘Dear Customer, you can have cash or you can have digital’ … then it’s seamless and it will be very good for Europe and very good for banks.”
Andrea Orcel
Role of Commercial Banks
ECB Executive Board member Piero Cipollone highlighted in an April presentation that commercial banks would handle digital euro services. Consumers would benefit from free services while merchants and service providers would incur associated fees. The presentation also noted that consumer banks would receive fees from merchant banks, though specific details and the exact fee structure weren’t disclosed.
Cautious Approach by the ECB
Speaking at Money20/20, Evelien Witlox, digital euro director at the European Central Bank, emphasized the ECB’s cautious approach towards a digital euro, despite the decline in cash usage and the rise of alternative currencies and digital payments.
If issued, the digital euro would become legal tender, allowing the general public to use central bank money for everyday transactions. This would be a potential benefit for citizens, as merchants offering digital forms of payment would be required to accept the digital euro, according to Witlox.
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