The future of money. What are digital currencies and how do they differ from money in a bank account

Europe has lagged behind in adopting new payment methods, beyond the forms of money we already know – cash, card payments (money via bank account) or cryptocurrencies. Widespread adoption of digital currencies and the development of its own financial infrastructure is expected, say fintech specialists at Money Motion.

In some countries, digital currencies are already widely used. Archive photo

Digital currencies are money created and used directly in electronic form, without necessarily relying on traditional banking infrastructure. I'm not just “money on the phone”, but represents a new financial infrastructure that allows direct, programmable and continuous transfers of value.

Both digital currencies and money in bank accounts are visible through mobile apps or digital interfaces, but they work differently. Money in a bank account is an input to the bank's system, with transfers usually involving intermediaries and not always settling instantly. Digital currencies, however, are native digital assets that can be transferred directly between users, often almost instantly and sometimes without intermediaries, operating 24/7 and enabling automatic or programmable payments.

In some countries, digital currencies are already widely used. The most advanced countries in the adoption of digital currencies are the Bahamas (USA), Nigeria and Jamaica, while China and India are leading the way globally through pilot projects.

Europe has yet to launch a digital currency, and the digital euro is still in development, with a possible launch towards the end of the decade. In contrast, privately issued cryptocurrencies and stablecoins are mainly used for investments and transfers. Romania follows a similar model, where digital currencies are used on a small scale, mainly for investment purposes and user-to-user payments.

Digital assets as a complement, not a threat

From the perspective of a global payment network, new forms of digital currencies do not mean the collapse of the existing system, but its expansion.

“The technologies behind new forms of digital currency represent a new opportunity for payments and for our network. We have been working with partners in this area for years and there are already a range of Mastercard programs on the market that allow users to buy and use digital assets“, says Hendrik Bourgeois, Senior Vice President Public Policy and Government Affairs, Mastercard Europe.

He points out that Mastercard sees the development of digital currencies as a natural evolution of the ecosystem. Digital assets, he adds, are not competition, but an additional layer.

“We consider digital assets as a complement to the payments ecosystem and as another currency we support within our network. Ultimately, it's about enabling people to pay in the way that suits them best – by expanding the payments ecosystem through interoperability, relevant services, global reach and trust“, added the expert.

Europe is late, but it cannot stay behind

Although payments have rapidly gone digital, most transactions remain anchored in traditional banking infrastructure. However, Europe is now at a turning point.

While the private sector and other regions are rapidly advancing with stable cryptocurrencies and blockchain-based infrastructures, the European Union is trying to close the gap with initiatives such as the digital euro currency and the development of its own financial infrastructure. The stake goes beyond technology, touching on monetary sovereignty, security and economic competitiveness.

Nikola Škorić, co-founder of Electrocoin and Money Motion, warns that the private sector already has significant momentum.

“Europe is quite a laggard compared to the main private stablecoin issuers, as the US stablecoins USDC and USDT together processed more than $30 trillion worth of transactions in 2025, which is an enormous global traffic that far exceeds most nominal European initiatives.

If we look at the facts, Europe is moving towards a world where money becomes a digital infrastructure, not a product. The digital euro should bring a state guarantee and stability to the online environment. At the same time, the tokenization of real assets will show how quickly and efficiently value can move when recorded on the blockchain”explains Nikola Škorić.

This will not “kill” cryptocurrencies. Rather, it will separate speculation from real use and force projects to show what they are really useful for. When institutions adopt the same technology, the network effect becomes huge, and what was an alternative yesterday becomes the standard tomorrow.

His assessment of the end of the decade is pragmatic: “By 2030, citizens will likely pay and send money through a combination of the digital euro and regulated stablecoins. Bitcoin and similar assets will remain important, but more as a global and neutral reserve of value than as a means of “neighborhood coffee”. The real change is that the blockchain will become invisible. We will use it without thinking about it. And when technology gets boring, that's usually a sign that it's won.”

Tokenization as a redesign of the financial 'waterway'

If the digital euro represents the public layer of currency, tokenization represents a new way of circulating assets.

“If the digital euro becomes the new public settlement infrastructure, and tokenized assets enter the main financial flows, then we are not just digitizing assets, we are redesigning the “navigable way” of the financial market“, adds Robert Markuš, director of Smartis.

He points out that this is a deeper transformation. According to his interpretation, three layers of infrastructure will decide whether the tokenized economy can develop safely and operationally stable: an interoperable real-time settlement infrastructure, an identity-based compliance and trust architecture, and cryptographic security and operational resilience built into the design.

Banks will not be able to choose between old and new, he warns, but will have to build hybrid architectures where tokenized deposits, central bank digital currency, DLT platforms, RTGS systems, SEPA and card payment schemes coexist.

Markuš further points out that in the tokenized economy, identity becomes as important as liquidity. Strong digital identity, orchestration of KYC/KYB processes, AML surveillance adapted to tokenized flows and programmable compliance are no longer additional functionalities, but the foundation of the system.