the digital euro project is about to launch, and the European Central Bank (ECB) is analyzing its potential impact on the use of the euro in the euro area. A recent report shows that the digital euro could replace 5 euros in physical banknotes out of every 10 euros, as well as 3 euros in bank deposits out of every 10 euros.

The European Central Bank estimates that, depending on the adoption rate, it could replace up to 256 billion euros in banknotes. However, considering that there are currently over 1.56 trillion euros in circulation, its usage may still be relatively small. As Europe pushes for the digital euro to counter stablecoins like the US dollar, ECB Governing Council member Piero Cipollone emphasized its necessity.