ECB Says Cash ‘Not Fit’ for Digital Economy, Dismisses CBDC Privacy Concerns

The euro logo is seen in front of the European Central Bank (ECB) in Frankfurt am Main, Germany, on Jan. 10. Daniel Roland/AFP via Getty Images

In the digital economy, cash is no longer a useful tool, and a central bank digital currency (CBDC) is the “only solution” to continue the existing monetary system, according to a new paper from the European Central Bank (ECB).

The eurozone’s central bank recently published a paper titled “The Economics of Central Bank Digital Currency,” in which the authors assessed the implications for the financial system and examined data privacy and digital payments.