Coins on the way out as EU pushes digital euro plan

Warning of tech fraud and chaos

- SEAN MURPHY

EU chiefs are to push ahead with controversial plans to turn the euro into a digital currency - despite banks warning that it is wide open to fraud.

The European Central Bank has been pursuing a digital euro currency since 2020 in a bid to plug a gap that could be exploited by private firms or other central banks.

Supporters claim it would complement cash, increase the speed of transaction, and reduce costs for financial-service providers by shifting spending away from physical infrastructure in favour of digital finance.

But German MEP Markus Ferber branded it a "solution in search of a problem", while fears of a financial crash due to technological stability of a digital system were also raised.

However, the European Commission yesterday published a proposal to provide a legal foundation for the ECB to launch the digital Euro.

It could get the go ahead in October to be available by 2027 but would then need to be backed by the EU's 27 member states and the European Parliament before being introduced.