Before the euro became the common currency of the European Union, Germany, like many other European countries, had its own national currency. The currency used in Germany before the euro was the Deutsche Mark, commonly known as the Deutschmark or DM. The Deutsche Mark was the official currency of West Germany from 1948 until 1990, and then continued to be used in reunified Germany until the introduction of the euro in 2002.
The Deutsche Mark was a symbol of Germany's economic strength and stability. It was a widely respected currency that held a strong position in international markets. The currency was known for its reliability and low inflation rates, making it a preferred choice for investors and consumers alike.
The decision to adopt the euro as the common currency of the European Union was a significant step towards economic integration in Europe. The euro was introduced in 1999 as an electronic currency and then in physical form in 2002. Germany, along with 11 other EU countries, was part of the initial group of countries that adopted the euro as their official currency.
Despite the adoption of the euro, many Germans held on to their old Deutschmarks for sentimental reasons. The Bundesbank estimated that there were still billions of Deutschmarks in circulation even years after the introduction of the euro. While it is no longer possible to use Deutschmarks as legal tender, they can still be exchanged for euros at the Bundesbank.
The euro is a common currency of the European Union but six member countries don't use the euro currency and one more has negotiated an opt-out clause. Some EU governments' desire to retain national currency has stunted the euro area's expansion. Persistent high inflation could change it.
From China to the United States, Jamaica to Japan, dozens of central banks worldwide are exploring or have already put in place digital currencies. Will Germany launch the digital Euro (CBDC) and challenge the upcoming BRICS currency in the financial market?
I still remember as vividly and if it were yesterday a lunch conversation with my colleagues at the Yale School of Management in late 2001. Twenty years after the introduction of the euro, the European Monetary Union (EMU) is at its crossroads. Following the outbreak of the European financial crisis, Greece defaulting on its debt was astounding and left many wondering how Greece's situation became so dire.
To increase its power in Europe and lessen German dominance, France needs to change itself and build a real European political union. You can exchange them for legal tender in euros, but Germans still hold deutschmarks. The Bundesbank says the combined stash of notes and coins is worth millions.
