As the European Central Bank marks the 20th anniversary of the euro’s introduction, it is a testament to the success of the massive logistical undertaking that followed the decision to adopt a single currency. The event was celebrated with a light display on the ECB headquarters in Frankfurt, Germany, displaying the colours of the European Union.
In 2002, the euro was introduced for accounting purposes and electronic payments, followed by the cash introduction on January 1, 2002, in 12 countries. The introduction of notes and coins quickly replaced national currencies such as the German mark, French franc, and Italian lire, with shop customers receiving change in euros under fixed exchange rates. The old currencies were soon swept out of circulation as people spent their remaining national cash, dispelling warnings of a logistical catastrophe.
European Central Bank
ECB president Christine Lagarde, who was a lawyer at the time, recalled her own experience of withdrawing the first euros from a cash machine with friends who predicted the switch would overload the machines. In an article on the ECB’s website, she wrote about how they made a bet that if the machine gave them French francs instead of euro notes, they could keep the money. After midnight, they tried the cash machine and dispensed brand new, crisp euro banknotes, and they all raised a glass to the new European currency.
The euro has become an integral part of European finance, with 19 of the 27 EU countries using the currency. The bank plans to redesign the banknotes, with a final decision on the new look expected in 2024, as well as studying the possibility of a digital version of the currency.
