Shaping the future of money
The European Central Bank outlines a strategy to modernise money and payments in Europe, balancing public trust with private innovation while safeguarding cash and enhancing cross-border transactions.
Central banks have long issued money and protected its value, but today’s digital shift demands a renewed focus on trust, efficiency, and adaptability. As digital payments grow and tokenisation reshapes finance, central banks must ensure public money remains reliable while private solutions thrive. The Eurosystem’s payments strategy aims to keep central bank money relevant for both retail and wholesale transactions, strengthen Europe’s financial resilience, and support the euro’s global role without replacing private innovation.
Cash remains a critical pillar of the payments ecosystem, offering resilience against cyber risks and system outages. Over 31 billion euro banknotes, valued at more than €1.6 trillion, circulate in Europe, serving as both a payment method and a store of value. The European Central Bank emphasises that cash is inclusive, privacy-preserving, and a symbol of European unity, rejecting any false dichotomy between cash and digital payments.
To future-proof cash, the Eurosystem is enhancing euro banknotes with improved security features, reduced environmental impact, and better accessibility. A public survey this summer gathered nearly ten million responses—two-thirds from people under 35—on shortlisted design proposals, reflecting strong European engagement with the currency’s evolution.
The Single Currency Package includes proposals to reinforce the legal tender status of euro banknotes and coins alongside the digital euro regulation. Meanwhile, the Western Balkans are integrating with Europe’s payment systems, with real-time, low-cost domestic transactions already operational in Bosnia and Herzegovina and Montenegro, and soon in Albania, Kosovo, and North Macedonia.