The Digital Euro From a Geopolitical Perspective: Will Europe Lag Behind?

FSBC Working Paper February 2022

24 Pages Posted: 5 Apr 2022

See all articles by Philipp G. Sandner

Philipp G. Sandner

Frankfurt School of Finance & Management

Jonas Gross

Frankfurt School of Finance & Management

Date Written: February 15, 2022

Abstract

The digital euro is not a monolithic project. On the contrary: The fields of application are broad, and possible solutions are diverse. This paper provides an overview of use cases, application domains, and infrastructures for the digital euro that differ significantly. A comparison with solutions for the digital dollar and the digital yuan leads to the conclusion that, in the most extreme case, the euro could become a regional currency for Europe. The main reason for this argument is the design and prioritization of current approaches within Europe as well as the European Central Bank's digital euro project, and that stablecoin approaches seem to be neglected as solutions for the digital euro.

Keywords: CBDC, digital euro, blockchain, geopolitics, China, USA, euro

JEL Classification: E42, E58

Suggested Citation

Sandner, Philipp and Gross, Jonas, The Digital Euro From a Geopolitical Perspective: Will Europe Lag Behind? (February 15, 2022). FSBC Working Paper February 2022, Available at SSRN: https://ssrn.com/abstract=4035740 or http://dx.doi.org/10.2139/ssrn.4035740

Philipp Sandner

Frankfurt School of Finance & Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

HOME PAGE: http://www.philipp-sandner.de

Jonas Gross (Contact Author)

Frankfurt School of Finance & Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

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