In a speech, the ECB’s Fabio Panetta argues that a digital Euro is necessary because

[i]n the digital age … banknotes could lose their role as a reference value in payments, undermining the integrity of the monetary system. Central banks must therefore consider how to ensure that their money can remain a payments anchor in a digital world.

He argues that

outsourcing the provision of central bank money [to stable coin providers] … would endanger monetary sovereignty [as would the absence of a national digital currency].

Panetta also argues that a digital Euro could

• improve the confidentiality of digital payments and
• increase choice and reduce costs

and should

• avoid interfering with the functioning of the financial system and
• be available within private payment solutions.

Panetta does not discuss

• seignorage and
• time consistency motivations.