Eurosystem

Definition ∞ The Eurosystem comprises the European Central Bank and the national central banks of the euro area countries. Its primary objective is to maintain price stability, thereby preserving the purchasing power of the euro. It also conducts monetary policy, manages foreign reserves, and ensures the smooth operation of payment systems within the euro area. This collective body forms the central banking system for the currency.
Context ∞ The Eurosystem is actively engaged in researching and potentially developing a digital euro, which represents a significant future development in the digital asset landscape. Discussions often involve the implications of a central bank digital currency for monetary policy, financial stability, and privacy. Key debates also address the role of commercial banks in a digital euro ecosystem and its potential impact on existing payment infrastructures. News frequently reports on the Eurosystem’s progress and policy statements regarding digital currency initiatives.