Digital Euro Launches in Two Versions to Meet Diverse Financial Needs
According to the Economic Desk of Webangah News Agency, the digital euro project has been launched in two separate versions: a retail version for public use and a wholesale version for banks and institutions with central bank money access. While public attention focuses on the retail version, experts emphasize that Europe currently has greater need for the wholesale digital euro.
The successful implementation of the wholesale digital euro could bring significant benefits to the European economy. Although tokenized finance remains in its early stages, it has experienced rapid growth in recent years, particularly in the stablecoin sector, and is gradually entering mainstream financial systems. This model’s appeal lies in its fast transaction speeds, 24/7 operation, programmable tokens through smart contracts, transparency, and traceability – features attracting companies, especially those with cross-border supply chains.
One major development challenge has been the lack of reliable ‘on-chain cash’ for transaction settlements. While stablecoins have partially filled this gap, their heavy reliance on the U.S. dollar and America’s push for their widespread use poses monetary sovereignty and financial stability challenges for Europe.
The wholesale central bank digital currency (wCBDC) is considered the best response to these challenges. The European Central Bank’s ‘Ponets’ project aims to enable central bank money settlements by Q3 2026. This initiative forms part of the broader ‘Apia’ vision to create an innovative ecosystem for wholesale digital euros and potentially connect them with other central bank digital currencies globally.
Financial analysts suggest the project’s success could ensure the euro keeps pace with the dollar in the global digital economy and accelerate the creation of a unified European digital capital market, strengthening Europe’s financial position.
