The ECB is currently one of around 100 central banks investigating a central bank digital currency, and is due to consider whether to go ahead later this year. Some observers have touted as an advantage the ability to limit onward use of a digital currency – for example as food stamps that can be spent only on essential goods, or paying taxes automatically. Others, including euro area finance ministers, are opposed, saying the ability to be programmed would override the function of money as a fully fungible asset.
Digital Euro Will Never Be Programmable, ECB’s Panetta Says
