A digital euro could provide these people with the ability to pay electronically both in stores and online, track their spending, and build a payment history. This could encourage them to demand for more complex products such as savings, loans and insurance. The more the digital euro is integrated into existing payment systems, the greater the benefits will be.
On an international level, it could enhance the efficiency of remittances, which are still far more expensive and slower than domestic payments. Furthermore, a CBDC has the potential to offer improved security as it would rely on some form of identification to initiate payments, making it harder for fraudsters and thieves to carry out illegal activities. ii.