Giving the digital euro legal tender status may help to increase its adoption and use, creating a positive feedback loop of network effects (where the value and utility of a payment system increase as more users join and transact within the network). In other words, the more people use a particular payment system, the more valuable and convenient it becomes for all users. 10.
For the merchants, the digital euro, as a true pan European retail payment solution, would allow for enhanced bargaining power in the payments market that is currently dominated by a few dominant providers. 11. See Written feedback after the 6th Euro Retail Payments Board (ERPB) technical session, March 2023. 12.