When companies are exposed to increased competition in global markets, they face pressure to cut costs and hold down prices. Similarly, consumers have access to a greater supply of imports from lower-cost, emerging-market producers, also dampening inflation. This impact became particularly important for manufactured goods early in the 2000s, after China joined the World Trade Organization, and it could still be at work.
Regardless of the decisions that are made, one thing is clear: the Eurosystem will continue to offer cash in the future. The digital euro will complement cash, not replace it. Together, we need to leverage the potential offered by digitalisation to strengthen European sovereignty in the world of payments.