This research paper examines whether the European Central Bank (ECB) is entitled de lege lata to issue an electronic equivalent of paper‐based euro banknotes (e‐banknotes) and, if so, under what conditions such e‐banknotes might have legal tender status. To this end, Part 2 sets the stage...

The use of cash in the euro area is declining. Accordingly, the European Central Bank is exploring options for the design of a digital euro as a form of central bank money available to the public. This article addresses the key question of whether the Eurosystem is empowered to issue a digital...