The interview was conducted by Lisa Gilz.

Mr Balz, in specific terms, when will the digital euro be introduced?

We expect people to be able to pay with the digital euro in 2028, though possibly not until 2029. At the Bundesbank, we are working at full speed together with our colleagues in the Eurosystem to ensure that people will be able to use the digital euro as soon as possible. However, the ECB Governing Council will only be able to decide on the introduction of the digital euro once the legislative process in Brussels has been completed.

Will this be similar to the introduction of the euro and everyone will receive a small welcome package with digital coins?

There will, of course, be an information campaign for the general public in advance, similar to the introduction of euro cash in 2002. As the name suggests, the digital euro will not be issued in the form of coins, but digitally by the Eurosystem. In the end, the digital euro should be contained in this (Balz lifts up his mobile phone), in a wallet on your phone. It will be a kind of digital cash that you can use to pay anywhere in the euro area at the point of sale, online or with people you know. Today, cash is the only European means of payment that can be used to pay in every euro area country. As far as digital payments are concerned, we have been heavily dependent on foreign payment providers to date.

Will I have to open my own account with the European Central Bank?

The digital euro would be linked to your current account. It is intended that banks and savings banks will get in touch with their customers as soon as the digital euro is available. One thing is clear: there will not be any direct contractual relationship between the central bank and end-users, even with the digital euro. The institutional rules of the Eurosystem already rule out this situation. At the Bundesbank, we have no interest in potentially opening 84 million accounts in Germany. That would far exceed the resources of a central bank. We don’t have the staff for this and we don’t think it would be expedient.

Do fans of cash now have to fear it will be abolished?

Absolutely not. We in the Eurosystem – i.e. the ECB and the 20 national central banks of the euro area countries – continue to back cash. I am responsible not only for the digital euro, but am also the Executive Board member responsible for cash. And that is why I really can say in good conscience that there are no plans to abolish cash. For us, it is important that freedom of choice is maintained in the future: people should continue to be able to choose how they pay. This is, incidentally, a view shared by policy makers. Indeed, the European Commission’s proposal for a regulation on the introduction of a digital euro is accompanied by proposals to strengthen euro cash.

What is being done then to maintain confidence in cash?

In the Eurosystem, we are in the process of creating a third series of banknotes. Work is currently underway on the future design. There are two proposals for the motifs on the future banknotes: either well-known personalities who have shaped Europe, or rivers and birds. The final decision is expected to be taken at the end of 2026.

The fact that the Bundesbank is not considering abolishing cash is also evident from our decision last year to adjust our branch network. There are currently 31 Bundesbank branches, which are mainly required for cash and cash logistics. We will close some branches, but will build new ones in Stuttgart, Frankfurt, Cologne and Hanover that meet the modern demands of cash logistics. We would not be doing so if we did not believe in the future of cash. Cash will continue to be a core product of the Bundesbank, even if the digital euro exists alongside it.

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