Thank you. Honourable Chairs, Honourable Members:

It is a pleasure to return to the European Parliament for this discussion on the digital euro.

The euro has now existed for more than a quarter of a century.

Of course, the world has changed significantly since the euro was introduced.

Technology is evolving at a breathtaking pace, transforming how we live, work, and interact with each other.

These changes are also reflected in how we use our currency.

More and more Europeans are choosing to pay digitally.

The share of cash payments in the euro area at the point of sale has dropped from 72% to 52% between 2019 and 2024.

Europe needs to lead in embracing the digital age and seizing all the opportunities it offers.

The rest of the world is quickly adapting to these changes.

If Europe does not keep pace, we risk being left behind.

This is where our proposal for the digital euro comes in.

A digital euro—securely issued and backed by the European Central Bank—offers the potential to modernize our payment systems, strengthen the global role of the euro, improve financial inclusion, and reinforce monetary sovereignty in the digital age.

The digital euro presents users with significant advantages and opportunities.

First, the digital euro would be a seamless means of payment usable throughout the euro area, regardless of where payers are located and which commercial bank or payment service provider they use.

Users would be able to pay anytime, anywhere across the euro area, with payments sent and received instantly 24/7, 365 days a year.

The digital euro would also allow for digital payments, even without internet access.

Lastly, the digital euro would benefit merchants by lowering fees for accepting digital payments.

In addition to the benefits for end users, the digital euro also enhances our sovereignty in payments.

Today, the space left by declining cash use is being filled by non-EU payment solutions.

We cannot afford to cede technological control over the EUs economy entirely to others.

As other nations develop and promote alternative digital currencies for international trade, the EU must act to ensure that the euro strengthens its role as a strategic reserve currency.

A well-executed digital euro would reinforce this position.

Recent developments in todays more complex and conflictual world have underscored the urgency of progressing with the introduction of the digital euro.

The digital euro can be a crucial pillar in strengthening the EUs strategic autonomy by increasing the euros resilience against other currencies, payment systems, third-country Central Bank Denominated Currencies, and euro-denominated stablecoins.

Now, I would like to briefly address some concerns regarding the digital euro.

Firstly, regarding private sector payment providers and banks.

The digital euro is not intended to compete with private payment solutions but to provide a complementary option that fosters innovation and competition in the retail payments market.

The digital euro will work closely with the private sector.

Its open access standards will be made available to the private sector, enabling them to develop innovative payment solutions on top of the digital euro and expand their services seamlessly across national borders within the EU.

The policy choice is not about promoting private payments or the digital euro, but how we can foster both, as they complement each other in achieving our policy objectives, particularly the autonomy of European retail payments.

The digital euro will not alter the critical role that banks play in financial intermediation in our economies.

By introducing holding limits and other safeguards, our proposal ensures that the digital euro will never jeopardize the financial stability of the EU or the intermediary function of banks.

On privacy, I want to be very clear: Guaranteeing citizens rights to privacy is one of the fundamental pillars of the Commissions proposal for the digital euro.

The digital euro will provide cash-like privacy in the digital world for offline payments and a high degree of privacy for online payments.

This will ensure that central banks can never identify users.

The fundamental right to privacy has been a central issue in designing the proposal for the digital euro.

The proposal strikes the right balance between citizens legitimate requests for cash-like privacy in payments and the need to address money laundering, terrorist financing, and fraud risks.

Regarding cash: the digital euro will be an additional choice for consumers.

It will complement and not replace cash.

As a sign of the Commissions determination to safeguard the right to pay in euro cash and have easy access to cash, the Commission proposed a regulation on the legal tender of euro cash alongside the digital euro proposal.

Both proposals make it clear that people will have the choice to pay in euro banknotes and coins or in digital euros.

Finally, I am proud to say that the digital euro will be an inclusive means of payment.

Our legislative proposal includes several requirements to ensure accessibility for unbanked individuals, people with disabilities, functional limitations, or limited digital skills.

In conclusion, the digital euro has the potential to provide a pan-European means of payment that is widely available and accepted throughout the euro area.

This will, in turn, promote innovation and competition while offering an additional choice that complements cash and private payments.

We look forward to working closely with the European Parliament to make this vision a reality.

I look forward to your questions. Thank you.