Current Affairs - Finance - Discussion

The European Central Bank (ECB) has introduced the digital euro as a central bank digital currency (CBDC) to modernize Europe's payment landscape. The digital euro enables direct peer-to-peer transactions, reduces transaction costs, and maintains anonymity similar to cash. As a digital version of cash, it is issued directly by the ECB and aims to strengthen Europe's digital sovereignty against global competitors. Unlike cryptocurrencies, CBDCs like the digital euro are legal tender, issued and backed by a central bank, providing a secure and regulated digital payment solution.