The Bundesbank defended the digital euro against critics and indicated that a political decision will likely be made soon. “I expect a decision this year” senior director Burkhard Balz told the “Welt am Sonntag”.
Balz explained that the project is a priority partly because Europe’s payment system is heavily reliant on U.S. providers. “Almost two‑thirds of all transactions go through U.S. firms” he said. The digital euro is intended to create a European alternative and increase resilience.
At the same time, Balz rejected the notion that the digital euro could displace cash or represent state‑driven industrial policy. “I see it as a digital twin of cash” he said. He pointed out that the private sector has failed to build a pan‑European payment solution, calling it a classic market failure. The digital euro, he added, is meant as an additional option, not a replacement.
Balz also defended the practice of holding Germany’s gold reserves abroad. “If it ever becomes necessary to mobilise our gold, it must be physically available at major trading venues” he said. “New York and London are key gold‑trading centres”.
When asked whether the published serial numbers of individual gold bars, which critics say do not meet international standards, are sufficient for transparency, Balz responded that he will not comment on specific audit quotas or procedures. He noted that contractual arrangements with the central banks that store the gold govern the matter. In principle, the reserves are regularly inspected and, from the Bundesbank’s view, there is no doubt about their security.