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The European Central Bank (ECB) announced that it will start to redesign euro banknotes as cash remains an important mode of payment for consumers in the region.

In a statement on Monday, the central bank said that it has appointed an advisory group to submit a list of new themes to the ECB's Governing Council, based on opinions from people across the euro area, reports Xinhua news agency.

ECB expects to select new euro banknote designs by 2024.

"Euro banknotes are here to stay. They are a tangible and visible symbol that we stand together in Europe, particularly in times of crisis, and there is still a strong demand for them," said ECB President Christine Lagarde.

"After 20 years, it's time to review the look of our banknotes to make them more relatable to Europeans of all ages and backgrounds," she added.

A study released by the ECB in December last year showed that consumers predominantly used cash for POS and P2P payments. The volume of POS and P2P transactions conducted in cash accounted for 73 per cent of the total.

Over half of the respondents of a survey as part of the study considered it important for them to have the option to pay with cash in the future.

The study was conducted in 2019 to find out the payment attitudes of consumers in the euro area.

Despite the increase in cashless payments during the pandemic, the demand for cash has risen owing to cash's crucial role as a store of value, according to the ECB.

Meanwhile, the central bank is investigating what a digital euro may look like.

The ECB announced in July that it would launch a digital euro project to weigh the possibility of issuing a digital euro.

Initiated in October, the investigation is expected to last for about two years.