Digitisation is affecting all areas of life, particularly evident in the steady increase in digital payments versus cash payments. Against this backdrop, policymakers and central banks are exploring the introduction of a digital euro as a means of payment.
With the final report on its preparatory phase, the European Central Bank (ECB) presented a concrete basis for discussion in October 2025, now under deliberation at the EU Council and Parliament.
A supplement to physical cash
So, what does the digital euro offer? First: It is not intended to replace cash. Cash will remain available and largely used as before. The digital euro is designed to complement physical cash.
It lacks physical form but allows transactions in digital central bank money, known as CBDC ("Central Bank Digital Currency"), unlike transfers or conventional electronic payments. While cryptocurrencies or stablecoins are issued by private firms, a CBDC is backed by a sovereign state or – as with the digital euro – a community of states, offering a secure and centralised alternative.
Contributing to resilience
Today's non-cash transactions predominantly rely on book money, involving numerous private, often non-European, players such as banks, payment service providers, card operators, and providers of card readers or mobile payment solutions. Dependency on such external entities increases systemic vulnerability during crises.
Given growing interest in resilience and strategic autonomy, there's a rising demand for a European-controlled digital payment method. The digital euro could reduce dependencies, bolster monetary sovereignty, and strengthen the eurozone's strategic capabilities.
Lower costs
Another benefit concerns cost structures. Card payments and other private payment services entail potentially high fees depending on transaction types, particularly burdensome for retailers and businesses, as non-cash payment options are increasingly expected by consumers. According to the Bundesbank study "Payment behaviour in Germany", around half of all transactions in 2023 were non-cash; by turnover, this was 74%. The ECB aims for the digital euro to provide a low-cost, eurozone-wide accepted payment option to enhance competition and ease costs for businesses.
High level of data protection
A third key argument is data protection. Currently, payment data pass through numerous stages during a transaction – each a potential point of data extraction. With its shorter transaction pathways, the digital euro promises enhanced data protection. An offline payment feature for person-to-person transactions is also planned, where only the sender and receiver know about the transaction. This aims to replicate cash-like privacy in digital payments.
How do companies benefit specifically?
The digital euro presents different benefits depending on the industry:
For retail, digital payments will become cheaper. While the exact fee structure is still under political discussion in the first half of 2026, it is generally expected that fees will be at the lower end of the current fee scale of private competitors.
Companies with a strong logistics focus can automate payments more effectively by setting up conditional payments: If a delivery reaches the warehouse and is scanned, the associated payment can be triggered. The integration into smart contracts, pay-per-use models, or micropayments also expands the possibility for many businesses to offer new products or usages at an attractive price.
Companies from all industries benefit from the digital euro as a uniform, cross-border means of payment for digital transactions throughout the Eurozone.
Challenges
However, not everyone sees only advantages in the digital euro. Its introduction impacts the business models of banks and savings institutions. Giving citizens, businesses, and organisations direct access to digital central bank money raises concerns over deposit shifts, prompting lawmakers to propose holding limits for the digital euro – with limits under discussion between 500 and 3,000 euros. Additionally, these balances are unlikely to accrue interest.
The cost issue remains unresolved. While operating costs of the digital euro are expected by the ECB to be comparable to cash infrastructure costs, the debate over who bears the one-off investment costs required to adapt banking systems persists.
Compensation models also remain open – such as how transaction costs will be structured or private providers remunerated for services related to the digital euro.
What happens next?
Political negotiations continue at the European level. Should an agreement be reached in 2026, the digital euro could become a reality by 2029. The German Chamber of Commerce and Industry (IHK) will continue to monitor the process and regularly update businesses on developments.
DIHK Position
In mid-2023, the German Chamber of Commerce and Industry (DIHK) shared its position on the digital euro but is currently working on a new paper. It will be available here once finalized.
DIHK-Position Paper Digital Euro 2023 (only available in German) (PDF, 101 KB)
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Helpful Links
Further and continuously updated information can be found on the pages of the
European Central Bank and the
Deutsche Bundesbank.
- Relevant in topic:
- Wirtschafts- und Finanzpolitik
- Key areas:
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- Handel
- Digitalisierung
Released 04.02.2026
Modified 05.06.2026
Contact
Alexander Dern
Director Corporate Finance and Financial Markets
Sven Ehling
Spokesperson | Visual Communication