EURpalletti

EURpalletti is a hypothetical regional digital currency concept discussed in euro-area policy debates. The term combines "EUR", the ISO code for the euro, with "palletti", a coined diminutive intended to evoke small-value, regionally scoped transactions. The concept envisions a digital unit that would circulate alongside the euro, primarily for microtransactions and local settlements, rather than replacing the euro.

Designs proposed for EURpalletti vary. Some schemes describe a small-denomination digital unit pegged 1:1 to the euro or backed by reserves, usable for cross-border and local purchases. Other proposals envision a fully decentralized ledger token that preserves user privacy. Issuance could occur through a consortium of banks, municipalities, or a central-authority structure aligned with European governance, with digital wallets and retailer payment interfaces.

Key considerations include compatibility with EU financial regulation, anti-money-laundering rules, data privacy, financial stability, and interoperability with existing payment rails. Critics argue that regional currencies could add policy fragmentation or regulatory complexity, while supporters cite potential benefits for financial inclusion and experimental testing of digital-payment technologies.

As of today, EURpalletti remains hypothetical and unissued; researchers and policymakers have discussed pilots and impact assessments, but no formal rollout has occurred.

Related topics include the euro, central bank digital currencies, regional currencies, and digital payments.