The Bundesbank defended the digital euro against criticism and signalled that a political decision is likely to come soon. “I still expect a decision this year” Bundesbank board member Burkhard Balz told “Welt am Sonntag”.
Balz stressed that the project is a priority because European payments are heavily dependent on U.S. providers. “Around two‑thirds of all transactions go through U.S. firms” he said. A digital euro would offer a European alternative and increase resilience.
He also dismissed the idea that the digital euro would replace cash or be a form of state industry policy. “I view the digital euro as a digital twin of cash” he said. The private sector has failed to create a pan‑European payment solution-a classic market failure, he added. The digital euro is meant to complement, not replace, existing options.
Balz defended the practice of storing Germany’s gold reserves abroad. “If it ever becomes necessary to mobilize our gold reserves, they must be physically available at trading places” he noted. New York and London are the key gold trading hubs.
When asked whether the published serial numbers for individual bars-criticised for not meeting international standards-provide sufficient transparency, Balz replied that he would not comment on specific audit quotas or procedures. Contractual arrangements with the central banks that store the gold are in place. According to the Bundesbank, the reserves are regularly inspected, and there is no doubt about their security.
