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Will the Digital Euro Be Attractive Enough to Generate Significant Demand?

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  3. Vierteljahrshefte zur Wirtschaftsforschung
  4. Vol. 92, Issue 3
  5. pp. 23–36

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Frenkel, M. Will the Digital Euro Be Attractive Enough to Generate Significant Demand?. Vierteljahrshefte zur Wirtschaftsforschung, 92(3), 23-36. https://doi.org/10.3790/vjh.92.3.23
Frenkel, Michael "Will the Digital Euro Be Attractive Enough to Generate Significant Demand?" Vierteljahrshefte zur Wirtschaftsforschung 92.3, 2023, 23-36. https://doi.org/10.3790/vjh.92.3.23
Frenkel, Michael (2023): Will the Digital Euro Be Attractive Enough to Generate Significant Demand?, in: Vierteljahrshefte zur Wirtschaftsforschung, vol. 92, iss. 3, 23-36, [online] https://doi.org/10.3790/vjh.92.3.23
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Will the Digital Euro Be Attractive Enough to Generate Significant Demand?

Frenkel, Michael

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 92 (2023), Iss. 3 : pp. 23–36

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Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/vjh.92.3.23
Language
English
Pages
14
Keywords

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Author Details

Michael Frenkel, WHU – Otto Beisheim School of Management, Vallendar/Koblenz

  • Michael Frenkel, WHU – Otto Beisheim School of Management, Vallendar/Koblenz. He studied economics at the University of Mainz, Germany, where he also received his doctoral degree. He then worked as an economist at the International Monetary Fund before returning to academia. He was first at the University of Mainz and then at WHU – Otto Beisheim School of Management, where he was also Rector for 10 years. His extensive international experience comes from working for the International Monetary Fund for several years and from several visiting positions in the United States, Europe, and Asia. His research interests are in international finance, open economy macroeconomics, and European integration. In addition to his research activities, Michael Frenkel has also worked as a consultant for the International Monetary Fund, the World Bank and the European Commission.
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References

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Abstract

Zusammenfassung: Der Rückgang der Verwendung von Bargeld und das Aufkommen innovativer digitaler Zahlungssysteme haben die EZB wie viele andere Zentralbanken dazu veranlasst, die Einführung ihrer Währung in digitaler Form zu erwägen. Die technischen Probleme bei der Einführung eines digitalen Euro scheinen nicht unüberwindbar zu sein. Ein Thema, das jedoch weniger Beachtung gefunden hat, ist die Nachfrage nach einem digitalen Euro. Der digitale Euro wird nur dann attraktiv sein, wenn er dem einzelnen Nutzer im Vergleich zu den derzeitigen Zahlungssystemen zusätzliche Vorteile bietet. Diese Vorteile können sich auf die Bequemlichkeit, die Erträge, die Kosten, die Transaktionsgeschwindigkeit, das Risiko und den Datenschutz beziehen. Der Beitrag kommt zu dem Schluss, dass in diesen Bereichen derzeit kaum nennenswerte Zusatznutzen erkennbar sind. Es muss also erst noch gezeigt werden, dass ein digitaler Euro tatsächlich den Wohlstand steigert. Auch aus regulatorischer Sicht ergeben sich einige Fragen, da die EZB zu einem direkten Konkurrenten von Geschäftsbanken und Zahlungsdienstleistern werden könnte.

Table of Contents

Section Title Page Action Price
Michael Frenkel: 1
1 Introduction 2
2 What motivates the ECB and other central banks to think about digital cash? 2
3 Design considerations of the ECB on the digital euro 4
4 The demand for a digital euro and the demand for cryptocurrencies 5
5 The demand for the digital euro as a medium of exchange 5
5.1 Convenience 6
5.2 Returns 6
5.3 Speed of payments 7
5.4 Costs of payments 7
5.5 Risk aspects 7
5.6 Data protection 8
5.7 Scope of users and relative volumes 8
6 Empirical evidence 8
7 The digital euro, commercial banks, and the money market 9
8 Issues from a regulatory perspective 10
9 Conclusions 11
References 12

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