ECB Affirms Cash Will Stay as Digital Euro Takes Shape

The European Central Bank (ECB) has reaffirmed that physical cash will remain a fundamental part of the eurozone’s monetary system, even as it advances its work on a digital euro. This message comes as central bankers aim to balance innovation with continuity. ECB Executive Board member Piero Cipollone stated in a recent blog post that a digital euro will not replace cash but will instead coexist with it, providing citizens with more payment options and preserving monetary autonomy [1]. The digital euro is being developed as a publicly backed alternative to private stablecoins, which are increasingly used for cross-border transactions and everyday spending [2].

The ECB has emphasized that physical cash continues to serve as a stable and accessible means of exchange, with €1.6 trillion in euro banknotes and coins in circulation. This remains a crucial element of financial stability, particularly in times of digital system disruptions. At the same time, a digital euro is being designed to offer a secure and efficient alternative for digital payments across the euro area [3].

The push for a digital euro is also seen as a strategic response to the growing influence of foreign stablecoins. ECB adviser Jürgen Schaaf has called for global coordination on stablecoin regulation, warning that dollar-backed tokens could strengthen the U.S. dominance in international payments if not carefully managed. He suggested that the EU consider euro-pegged stablecoins and DLT-based systems as part of a broader strategy alongside the digital euro [4]. Meanwhile, the ECB has observed that adoption of euro-pegged stablecoins has remained limited, with their circulation described as “marginal” even under the EU’s new regulatory framework, MiCA [5].

Despite these efforts, public interest in a digital euro remains lukewarm. A recent study showed that Europeans were unenthusiastic about holding digital euro when given a hypothetical €10,000 to allocate, favoring traditional assets like cash. This highlights the challenge the ECB faces in gaining widespread public acceptance [6].

The ECB’s approach has been praised as a balanced strategy that supports innovation while safeguarding the role of cash. The integration of a digital euro is being carefully managed, with extensive testing and public consultation to ensure it meets user needs without compromising the integrity of the monetary system [7]. While the ECB has not yet finalized its decision on issuing a digital euro, its commitment to preserving public money and payment autonomy remains a central theme in its evolving digital strategy [8].

---

[1] Mitrade — [https://www.mitrade.com/au/insights/news/live-news/article-3-1010750-20250805](https://www.mitrade.com/au/insights/news/live-news/article-3-1010750-20250805)

[2] AInvest — [https://www.ainvest.com/news/ecb-affirms-cash-stays-digital-euro-takes-shape-2508/](https://www.ainvest.com/news/ecb-affirms-cash-stays-digital-euro-takes-shape-2508/)

[3] Binance — [https://www.binance.com/en/square/post/08-04-2025-ecb-reaffirms-commitment-to-public-money-amid-digital-currency-growth-27858235717002](https://www.binance.com/en/square/post/08-04-2025-ecb-reaffirms-commitment-to-public-money-amid-digital-currency-growth-27858235717002)

[4] Coinlive — [https://www.coinlive.com/news-flash/864231](https://www.coinlive.com/news-flash/864231)

[5] Cryptotimes — [https://www.cryptotimes.io/2025/08/04/digital-euro-will-complement-not-replace-cash-ecb-executive/](https://www.cryptotimes.io/2025/08/04/digital-euro-will-complement-not-replace-cash-ecb-executive/)

[6] AInvest — [https://www.ainvest.com/news/ecb-stresses-cash-role-digital-euro-push-2508/](https://www.ainvest.com/news/ecb-stresses-cash-role-digital-euro-push-2508/)