Who Needs a Digital Euro? Everyone Who Uses Money

Consider the humble bank note. Wrinkled and torn as it may be, it’s the only government-issued legal tender — the only direct obligation of a central bank — to which most people have access. It’s foundational to the many forms of private money, such as bank deposits and Venmo balances, that now dominate daily commerce. Their value ultimately depends on the ability, if necessary, to convert them into cold, hard cash.

What to do, then, when finance goes digital? The European Central Bank is aiming to be among the first of its peers to fully address the question. It’s an experiment worth watching closely.