The aim of this work was to investigate the application of the digital euro, which is planned to be introduced by the European Central Bank. This is an overview study, which includes the advantages and disadvantages of using the digital euro as a virtual currency. The introduction of the digital euro would encourage further digitization of the financial sector and the economy in general, and new business models would be supported. Therefore, the main feature of the digital euro should be programmability and correspondence with the most modern technology. Given the design of the digital currency, small transactions would be conducted anonymously, while larger transactions would be verified. The introduction of the digital euro would also strengthen the transmission of monetary policy. Regardless of the advantages of such a cashless, centralized banking system, the user's privacy must not be violated. Detailed user profiles would be created, which would violate their privacy and freedom of movement. The profitability of the central bank would depend on the difference between the fee for the digital euro and the interest rate applied in such refinancing. If the design of the digital euro had some kind of flaws, this currency would become the basis for financing terrorism, money laundering or other illegal cross-border activities. Although the introduction of the digital euro is a complex process, the European Central Bank will have to find solutions to create a simple, safe and fast way of payment, which would at the same time satisfy the affinities of the citizens of the European Union.