If cash usage for payments continues to decline, it will put the role of public money, the very bedrock of our monetary system, at risk. The convertibility of private money into public money is an important cornerstone of our two-tiered monetary system. It builds confidence in our monetary system and, consequently, our payments system as well.
The third reason is that a digital euro might support digital processes in various aspects. For instance, intermediaries could have the option of offering innovative payment solutions based on CBDC. By providing a programmable and secure digital infrastructure, CBDCs open up a world of possibilities for the development of new financial products and services.