Opening and managing an electronic wallet
Accessing the digital euro would mean opening an electronic wallet with a supervised intermediary, such as a bank or, for example, a post office. The wallet, which can be loaded either from a bank account or by depositing cash, would allow payments to be made in digital euros. The amounts received in digital euros could be stored in the wallet, up to a maximum limit, or transferred, both manually and automatically, to a bank account; they could also be withdrawn in cash. Digital euro payments could be made by accessing the wallet via a mobile device app; in addition, using a physical card could be a possibility, especially for the benefit of people struggling to manage a wallet on a mobile device.
Security and Speed of Payments
Digital euro payments would provide security and speed for daily transactions in physical or online shops, for public payments between citizens and public administrations and for peer-to-peer payments. A digital euro would work where cards currently cannot, as transactions would be possible even without an internet connection or mobile phone services. The system would make it possible to transfer money easily from one wallet to another using devices such as smartphones or smartwatches. A digital euro would make payments possible anywhere in the euro area with no fees for the payer. It would also be a simple and secure method of payment for online purchases.
Recurring payments and holding limits
A digital euro would make recurring and automated payments easier, such as for rent and bills, and would have no geographical, time or user base constraints in the euro area; it would always keep its value, but would never be programmable money (for instance, like a voucher).
A maximum limit would be set on how many digital euros each user could hold in their wallet to prevent excessive deposit outflows from banks and to ensure financial stability. Users could also choose to link their digital euro wallet to their bank account and activate automatic transfer functions. Where such functions are activated, if receiving a payment would mean exceeding the maximum limit, the excess amount would automatically be transferred to the linked bank account. If an outgoing payment would instead require more than the amount held in the digital euro wallet, the missing amount would automatically be transferred from the linked bank account, thus allowing the payment in digital euros to be made.
Combining these functions with the holding limit would safeguard financial stability without compromising the ease of digital euro payments.
To find out more, visit the ECB website.
Financial and digital inclusion
A digital euro would be designed to be inclusive and accessible to everyone, also meeting the needs of people with disabilities, functional limitations or limited digital skills such as the elderly. To ensure that a digital euro is user-friendly and accessible throughout the euro area, merchants would be obliged to accept payments in digital euros and intermediaries would be obliged to distribute them to interested consumers. In addition, each euro-area country should designate specific entities, such as local authorities or post offices, to help the most vulnerable people to access digital euro services, even if they do not hold a payment account.
To find out more, visit the ECB website.
