Cryptocurrency has changed the way the financial industry operates with virtually instant payments, even when they are sent overseas. Records are transparent although transactions remain private thanks to the anonymity they offer, and with the introduction and widespread integration of smart contracts and other innovative decentralized finance technologies, we continue to see new and unique ways the technology benefits users.
While central banks are reluctant to integrate cryptocurrencies into their own financial products, many have been investigating the benefits of blockchain-based payments. The digital Euro is one such digital currency, but while it bears some similarities to cryptocurrency, it also has some distinct and important differences.
Cryptocurrency’s Rise
Cryptocurrency has gained popularity and increased acceptance. It is popular with ecommerce businesses and it is becoming more commonly accepted by businesses that accept overseas payments. Another area where cryptocurrency continues to attract attention is presales, such as Maxi Doge Token. These early fundraising rounds allow new blockchain projects to raise capital and build communities before tokens are fully launched. In past cycles, presales were often seen as speculative bets, but in 2025 they are increasingly being judged on utility, team credibility, and long-term viability. While they carry risks, presales remain one of the most accessible ways for investors to gain early exposure to innovation, and they demonstrate how market-led adoption can evolve independently of central bank initiatives.
Obstacles to Cryptocurrency Adoption
However, while crypto is becoming increasingly popular, there are still a lot of people and businesses that are reluctant to use coins like Bitcoin.
- Volatility – Apart from stablecoins, which are pegged to the value of assets like traditional currencies, cryptos can be highly volatile.
- Perceived Complexity – They also require the use of crypto wallets, which can be viewed as complex by new users.
- The Prevalence Of Scams – And, while the industry has matured, becoming stronger and better able to protect against fraud, scams are still prevalent.
- Regulatory Changes – There is also the question of government legislation and regulation, which is in a state of flux in many jurisdictions.
Digital Currency Benefits
But, for all of the challenges that cryptos pose, they do have considerable advantages. They are decentralized, which means no single entity has control over the currency. They are private, too, and transactions are faster and cheaper compared to a lot of traditional payment methods.
Stablecoins
Stablecoins can overcome some of the crypto challenges. They are tied to the value of the dollar, pound, or other currencies, which means they lack the volatility of Bitcoin and Ether. This has also led to some governments putting stablecoins at the front of the cryptocurrency queue when it comes to regulation. But, they still have the same perceived complexity and potential for scams as other cryptos. And, while some people appreciate the lack of centralized governance, many consumers prefer having the support of a centralized bank behind their finances.
Enter Digital Currencies
Digital currencies aim to combine the benefits of cryptocurrencies with those of traditional currencies. They utilize blockchain technology while offering the support of centralized governance.
The Digital Euro
The European Central Bank has highlighted its plans to launch a digital currency of its own – the digital Euro. Christine Lagarde, President of the bank, said that they intend to announce final plans for the currency by October this year. The bank itself has not identified a likely launch date but experts believe it will happen in 2028.
Two Currencies
The bank has said that the currency will include two constituent components: one for consumers and a wholesale digital Euro for institutions. The retail currency will offer free transactions, be usable offline, and have privacy protections. The wholesale version will be used to facilitate faster interbank payments and improved cross-border transactions.
Detailed Investigation
The ECB has been investigating the possible use of the Ethereum network to underpin its payment system, although its use hasn’t been confirmed. It will likely require users to have a digital wallet, but rather than the somewhat complicated wallets that crypto users rely on now, this would be developed and set up by financial institutions. This should mean payments will be simpler and less prone to human error.
In this regard, the fact that banks will act as intermediaries should also protect payments. With crypto payments, if the sender gets the recipient’s address or other payment details wrong, the transaction has effectively gone forever. Wallets and other providers have improved payment methods, implementing linked payments and QR payments, for example, but the risk still exists.
A digital Euro wallet will be more like an online banking app, although users will still be able to send and receive payments even when they are not online. Proximity to the recipient means that the wallet should still work efficiently.
Like stablecoins, the digital Euro will have the equivalent value of a single Euro. One digital Euro will always be worth one Euro, which means there is no risk of price volatility.
Other Digital Currencies
The EU is not the only body that is considering launching its own digital currency. Currently, the Bahamas, Jamaica, and Nigeria have already launched digital currencies. More than 130 more are exploring the launch of similar products, and these countries represent 98% of the global GDP. Several countries are also exploring a cross-border CBDC project, which would make overseas payments as convenient, cheap, and fast as local payments.
Centralized Bank Digital Currencies (CBDCs) Coming Soon
Because CBDCs would be issued by central banks and managed by existing financial institutions, integrating into existing infrastructure, it means that retailers and consumers would not need any additional systems or networks. Effectively, it will be possible to use digital currencies like the digital Euro without any extra load placed on the payer or the payee.
While the digital Euro looks to be a few years from a full launch, this does depend on regulations as well as further developments within blockchain. The process could take longer or it could complete sooner than anticipated.