Brussels, Belgium. A new study estimates the cost of implementing the digital euro could reach €18 billion, significantly higher than earlier European Central Bank calculations. The study was shared with Greek banks by the Hellenic Bank Association and later reported by Newmoney.
Cost estimates and reports
According to the cost study conducted by advisory firm PwC, the European financial sector would face implementation costs of €18 billion, which the study described as substantial given the scale of the required transformation. The ECB’s internal calculations previously placed the cost at between €4 billion and €5.7 billion, a range described as 4.5 to 3 times lower than PwC’s estimate.
PwC later issued a supplementary report maintaining its original assessment, reinforcing concerns about the level of investment required.
Key cost drivers
The study attributes the high projected cost mainly to IT infrastructure projects and transaction security requirements, which it describes as essential to support the functioning of the digital currency.
How the digital euro is described
The digital euro is described as the digital equivalent of cash and as an “electronic banknote” issued directly by the European Central Bank rather than by commercial banks. Its stated objective is to facilitate daily payments safely and conveniently, allowing users to store funds in a digital wallet on mobile devices or dedicated cards.
Funds held in digital euro form would be fully guaranteed by the central bank, and basic usage would remain free of charge. The system would operate through an application enabling contactless payments in shops, online purchases, and instant transfers between users, and would also be able to function without an internet connection to preserve a higher degree of privacy.
What do you think should be the priority in assessing the digital euro’s rollout: cost, security, or user privacy?
