Eva Vlaardingerbroek @EvaVlaar writes:
The Digital Euro is upon us. "It'll be a journey", @Lagarde says. "Straight to a totalitarian hell in which we will decide what you may and may not spend your money on", she left out.
UTL COMMENT:- She said "Cash is here to stay". I don't trust that at all.
Source Video:
https://twitter.com/EvaVlaar/status/1715095485839470608
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ECB Starts Preparation For Digital Euro In Multi-Year Project
By Francesco Canepa
Reuters
October 18, 2023
https://www.reuters.com/markets/currencies/ecb-starts-preparation-digital-euro-multi-year-project-2023-10-18/
FRANKFURT - The European Central Bank took a further step on Wednesday towards launching a digital version of the euro that would let people in the 20 countries that share the single currency make electronic payments securely and free of charge.
The ECB said it would start a two-year "preparation phase" for the digital euro on November 1, in which it would finalise rules, choose its private-sector partners and do some "testing and experimentation".
"After two years, the Governing Council will decide whether to move to the next stage of preparations, to pave the way for the possible future issuance and roll-out of a digital euro," the ECB said.
While Wednesday's decision is a small step in a multi-year project, it sets the ECB ahead of the other central banks of the Group of Seven (G7) wealthy nations and it may constitute a blueprint for others to follow.
A number of Caribbean countries and Nigeria have already launched digital currencies while China and Sweden are among those that have rolled out pilot projects.
But the Fed, the Bank of England and the Bank of Canada, have all been more cautious on such projects.
The digital euro will be for most intents and purposes like any online wallet or bank account except it will be free to use and guaranteed by the ECB rather than a private company, making it safer.
But the project has its fair share of critics, chiefly bankers and regulators who fear it will take deposits away from the commercial sector, but also some academics, the European Union’s privacy watchdog and some consumer groups.
"So far, the ECB has not been able to clearly communicate the added value of the digital euro," said Markus Ferber, a German member of the European parliament for the conservative European People's Party.
One of the key complaints is that a digital currency may facilitate a run on commercial banks at times of crisis while providing little improvement compared to existing accounts.
The ECB says a digital euro will create competition in the market for payments, dominated by U.S. credit card companies.
To assuage concerns about a hollowing out of commercial banks, the ECB has said it would set a cap on how many digital euros any individual may own, likely in the region of 3,000 euros.
