Commercial banks are the new banknotes, and the European Central Bank has announced plans to change the way they’re issued in a move to make it easier for consumers and businesses to use them.
Bank Cat, a subsidiary of Deutsche Bank AG, will become the first German bank to offer a commercial bank note with a digital image as the first official bank note.
The move is part of an effort to give commercial banks more visibility and control over their money supply, according to a statement from the ECB.
The move follows a decision last year by the Bank of England to allow digital banknotes to be issued and accepted by banks.
The German government plans to issue €1 trillion in digital bank notes in 2018, which is around one-quarter of the European Union’s total banknotes.
That’s a substantial boost for the ECB, which already has digital bank bills in circulation, and will also allow the central bank to expand the reach of digital money into the economy.