I. Introduction -- II. Objectives, Rationale, Opportunities versus Main Risks of a CBDC: Principles for a Coherent European Financial Regulation -- III. Central Bank Digital Currency and the Treaty Mandate of the European Central Bank -- IV. The Digital Euro and the EU Framework for Payments --...

The present paper provides an overview on current developments of cash usage and issue of central bank digital currency (CBDC) in the euro area and proposes a possible design of a digital euro that allows for instant offline payments. Cash usage at the point-of-sale decreased perceptibly in the...