The digital euro is so common that people carry less and less physical money with them.
Cryptocurrencies, like Bitcoin, are changing the way people pay for goods, products, and services. So Europe made the decision to create a digital currency to follow the changes in this area.
What is the digital euro, and how does it work?
This is an electronic currency that has been analyzed by the European Central Bank for three years as a project, and, apparently, the decision has been made to make it a reality.
Unlike other electronic currencies, the digital euro is under the supervision of the ECB. Although it cannot replace physical money, individuals and companies can use it for all kinds of payments.
This is a Central Bank Digital Currency, a digital currency issued and managed by a central bank. It will be supported by the Eurozone, which means it will be valid in all EU member countries.
Where can the digital euro be used?
The digital euro will be valid throughout the euro zone. In total, it covers 20 countries where the euro acts as the official currency.
With this currency, you can pay for goods, products, and services for individuals in physical stores and online businesses, and it even allows you to make payments to and from the public administration.
One thing worth highlighting is some of the digital You can also pay offline, that is, without having to be connected to the network.
It is possible to access the digital currency from your card or mobile phone, and you can use the payment platform any day, any time, absolutely free of charge.
What is the maximum amount I can make in digital euros?
The holding of this money is not unlimited; the maximum balance accessible to each citizen will be regulated by the competent entities. with the aim of reducing the fear of banks that a transfer will be created around the deposits of that currency.
So far, nothing definite has been established about the maximum holding limit of digital euros, but during the analysis of the project, the maximum amount of 4,000 euros was mentioned repeatedly.
The fact that a maximum amount is established does not limit the usefulness of the new European digital currencyFor this purpose, some steps have been taken.
- When the user receives a digital euro payment exceeding the set maximum limit, the surplus will be automatically transferred to another account linked by the user.
- And if the case arises where the user wants to pay in digital euros but the amount exceeds the amount held, it will be linked to a recharge operation in that currency in the linked account.
Will any commission be established for the use of the digital euro?
Use the digital euro It is free, but the banks will establish certain commissions for businesses and users who use this currency.
- Competent authorities will undertake the task of preventing the charging of commissions that may be excessive.
Is there a difference between cryptocurrencies and the digital euro?
Of course, unlike cryptocurrencies, the digital euro will be regulated by a central bank, which will prevent its price from being volatile and allow transactions to be carried out without any kind of risk.