The creation of a digital euro would “complement” the use of cash, Mairead McGuinness has said. 

Last week, the European Commission released a proposed framework for a digital euro that could be used alongside physical coins and banknotes.

Speaking to Breakfast Business With Joe Lynam, Commissioner McGuinness said the EU was responding to increasing popularity of virtual payments.

“Essentially, we’re trying to future-proof the euro so that should cash to decline in use, we want you and I to be able to access a Central Bank currency, the euro, digitally,” she said.

“So, it is different to private solutions, if you like, because this is Central Bank money.

“We are, in a way, complementing; so, we’re saying we want cash but we want the option for people to use the euro in digital format.”

A view of a cash register drawer of euro coins and bills. Picture by: Demianastur / Alamy Stock Photo

Commissioner McGuinness said the European Central Bank had been working on the proposal “for some time”.

“It’s really important that there’s democratic oversight of how a digital euro would actually come to fruition and ensure privacy and a whole range of other issues,” she said.

“So, last week was, if you like, the kickstarting of the legislative process where members of the European Parliament [and] member state politicians would have a role in establishing a digital Euro.”

Last year, a survey found that 47% of Irish businesses expect they will be fully cashless within the next decade.

Despite the trend, Commissioner McGuinness noted it was “important” cash payments remain an option, with 60% of Europeans supporting the right to use physical money.

“This discussion about how we use money and access money, I think it is going to become a bigger discussion across our member states,” she said.

“I know that in Ireland, Minister [for Finance] Michael McGrath is very proactive on this.”

The Government is considering whether to bring forward a ‘right to cash’ bill that would guarantee a consumer’s right to pay using coins or banknotes.

Main image: Split of a card payment and Mairead McGuinness.