“The mandate of central banks continues to be safeguarding the trust in money in the digital era. We have to let money evolve and be the forerunner of change in its evolution. This is the least citizens can expect from governments or public institutions”, noted Sandra Švaljek, Deputy Governor, in a speech “Central bankers: Observers or leaders of change?” delivered at the FinTech Conference Money Motion held in Zagreb on 9 March 2023.
The Deputy Governor explained the motives behind central banks’ work on the central bank digital currency (CBDC), highlighting its advantages, risks and privacy concerns.
“The decreasing use of cash is the main driver of CBDC development and the project of the digital euro in the euro area. In 2022, cash was the most frequently used payment method at points of sale in the euro area, accounting for 59% of transactions, down from 79% in 2016 and 72% in 2019. With cash being the only source of public, risk-free money accessible to all, the change to digital cash will require a shift in consumer preferences towards the digital form of public money, the digital euro. Our intention is not to replace cash but to supplement it with a widely accessible, inclusive and free for basic use digital form of money”, said Sandra Švaljek.