The term Eurozone is used to describe the European Union (EU in short) Member countries whose official currency is Euro. The Eurosystem comprises of the European Central Bank and the national central banks (e.g., Bank of Italy) of the Member States whose currency is Euro. One of the main aims of this Eurosystem is to maintain price stability and have safe and flexible financial transactions in the Euro area.
Eurozone is also known as Euro area. The European Central Bank ensures that there is safety, flexibility and soundness in the European banking system. It also supervises the banks in the Euro area and ensures the smooth functioning of the banking systems in the Eurozone . Euro was launched on 1 January 1999 and for the first three years it was used in the form of electronic transfers (non-physical form) but on 1 January 2002 the Euro coins and notes were introduced in its physical form.
