A digital euro is coming.

The European Parliament's Committee on Economic and Monetary Affairs has taken a position on the introduction of the digital euro. The German Confederation of Skilled Crafts (ZDH) argues that the single currency package could strengthen European payment systems, but must also provide added value for craft businesses.

With its single currency package, the European Commission aims to introduce the digital euro as a non-physical form of cash. It is intended to be available throughout the euro area and issued by the European Central Bank . The digital currency is not meant to replace banknotes and coins, but rather to complement them. It will serve as an additional payment option, while cash will remain a legal tender. The European Parliament 's Committee on Economic and Monetary Affairs has now issued its opinion on the single currency package proposed by the Commission.

The digital euro is intended to strengthen the euro's international role and offer both businesses and consumers an additional payment solution. It is designed to function both online and offline: online payments will be processed via an account-based system, while offline payments will be made directly via local storage media. The offline functionality would be analogous to using cash, as the loss of the device would mean the loss of the digitized money without any possibility of reimbursement. User privacy will be protected both online and offline.

Cash should remain important

Most businesses will be required to accept the digital euro. Exceptions will apply to freelancers and small businesses that do not accept other digital payments. Basic services such as account opening and the provision of at least one payment instrument will be free of charge. Payment service providers may offer additional services for a fee, but this does not apply to inactive account maintenance or service packages. Merchant and interprovider fees will be capped. No fees may be charged for offline payments.

“Given global uncertainties, it makes sense that the digital euro aims to strengthen the sovereignty and resilience of European payment systems. At the same time, the package also takes into account the continued important role of cash,” commented Holger Schwannecke, Secretary General of the German Confederation of Skilled Crafts . He added that it was positive that Parliament, like the Council before it, also provides for a less stringent obligation for merchants to accept the digital euro. Small craft businesses, in particular, would benefit from these exemptions.

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Schwannecke demands added value for all

However, it is questionable why such an obligation should remain in place at all. Schwannecke: "If the Digital Euro, as assured by legislators, offers added value for everyone, including craft businesses, they will accept it even without coercion. The fee structure is particularly crucial here. Merchants must be placed in a better position compared to the current card fees. These are currently dictated by payment providers and often reduce business profits. The fact that the EU Parliament and Council are advocating for limiting these fees is therefore correct." Schwannecke, however, argues for a more specific limitation.

"The costs must not exceed those of national cards such as debit cards. If other similar payment methods such as credit cards were used for comparison, craft businesses would be disadvantaged and the success of the Digital Euro would be jeopardized."

DHB now also available digitally! Simply click here and register for the digital German Crafts Journal (DHB)!