The European Central Bank expects the digital euro could replace up to 256 billion euros of cash

The digital euro project is about to launch, and the European Central Bank (ECB) is analyzing its potential impact on currency use in the Eurozone. A recent report shows that the digital euro could replace 5 out of every 10 physical euro bills, as well as 3 out of every 10 euros in bank deposits. The ECB estimates that, depending on the adoption rate, up to 256 billion euros in cash could be replaced.

However, given that more than 1.56 trillion euros in cash is currently in circulation, its usage might still be quite small. As Europe pushes the digital euro to counter dollar stablecoins, ECB Governing Council member Piero Cipollone emphasized its necessity.