This paper explores the financial implications of the potential introduction of a digital euro, a central bank digital currency (CBDC) designed to complement cash and bank deposits. The research employs a comprehensive review of existing literature on CBDCs, qualitative analysis of their economic impacts, and scenario-based modeling to project possible outcomes. The study identifies key benefits, such as enhanced financial inclusion and reduced reliance on non-euro digital currencies, alongside challenges related to regulatory frameworks and technological risks. It also proposes a research agenda for future analysis in policy and regulatory developments.
KeywordsDigital EuroCentral Bank Digital Currency (CBDC)Financial ImplicationsMonetary PolicyFinancial StabilityRegulatory FrameworksDigital PaymentsFinancial InclusionTechnology Risks
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