The Expected Public Value of the European Union Central Bank Digital Currency: What is the expected public value of a digital currency in the European Union? Student Track Paper

Abstract

Technological innovations have digitalized means of payment through central bank digital currencies (CBDC). As the CBDC of the European Union, the proposed digital euro would have far-reaching effects on European society. This paper studies the potential public value (operational, political, and social value) of this digital currency. Employing the Public Value of e-Governance Framework by Chu et al., this paper aims to examine the public value of the digital euro through a case study of the digital euro based on document analysis and eleven expert interviews. We find that it is too early in the design process to determine whether there will be operational and social value. However, experts appear convinced that there will be political value in the new digital currency.