It would increase privacy in digital payments thanks to the involvement of the central bank, which – unlike private suppliers of payment services – has no commercial interests related to consumer data. A digital euro could become necessary in a number of scenarios.
For example, if people would become reluctant to use cash, if other electronic payment methods could become unavailable owing to natural disasters, or if foreign digital means of payments threatened to largely displace domestic money. But introducing a digital euro could pose challenges. Some are technical, such as cyber risks and the protection of privacy.