‘Hard Law’ Needed to Safeguard Euro Cash

The International Mint Industry Association (IMIA) has published a position paper (2023/01 ¹) urging the European Commission (EC) to give legal certainty on the implications of the legal tender status of euro banknotes and coins in terms of mandatory acceptance and to enshrine it in secondary law.

The paper is prompted by the EC’s ‘Targeted Consultation on a Digital Euro’ which, in Section 3, discusses ‘making the digital euro available for retail use while continuing to safeguard the legal tender status of euro cash’. The IMIA summarises and explains the history of the current uncertain, legal position of euro cash, notes unique cash attributes that a digital euro will struggle to match and proposes legal certainty across the euro area.