Economist Gunther Schnabl, Director of the Flossbach von Storch Research Institute, has expressed significant criticism regarding the plans to introduce a digital Euro. Speaking to the Mediengruppe Bayern, he argues that there is no compelling reason for Europe to seek greater independence through a digital Euro, noting that existing payment systems, such as Girocard or Wero, are already robust. Schnabl suggests that the entire project might fail.
To support his skepticism, Schnabl references institutions like the Swiss National Bank and the Federal Reserve, which have maintained the view that a digital currency would not be necessary for end consumers.
However, Schnabl does not anticipate that the digital Euro will completely replace physical cash. While the share of electronic payments is continually increasing-a trend he attributes to their convenience-he highlights that cash circulation in the Eurozone was historically very high, at approximately €1.660 billion.
According to Schnabl, this high reliance on cash is tied to its fundamental value as “minted freedom.” He emphasizes that only cash permits truly anonymous storage and anonymous transactions. Many Europeans, in his view, resist the concept of becoming “glass citizens.” Furthermore, he points out the practical advantages of cash, particularly during periods of electricity failure or when internet connectivity is unstable.
