There is a limit of digital Euros one can have in his wallet. So you need to either stay that low, have many wallets which you probably wont be able to have or connect the wallet with a bank account. It is therefor good for European banks as it gives them an advantage over Visa/Mastercard: the cost.
If the digital Euro wallet would be unlimited in size there is no need for banks any longer.
It’s too good of an idea, so the EU will fuck it up like they always do. A stable coin with central bank warranty… would be nice. No more coins needed.
There’s a lot of potential issues with narrow banking (which is what you describe, where banks are disintermediated). The system would have to be very different if we still want to lend money to people and business (which we do want to, as it allows for a more productive economy), maybe there’s a system that would work but it’s a lot of risks and unknowns (and most countries might not want to experiment with it and be the ones learning the lessons and going through the potential crisis while trying to make a totally different financial system work )
It’s the same for India. UPI is gaining share rapidly against Visa & Mastercard. Lot of pressure from US to get the level playing field. Whatever it means.
I think US should try to focus on providing low cost high tech solutions rather than try to force them. It’s not going to get anywhere.
Digital Euro is something EU should pursue irrespective of lobbying, pressure etc. Its ridiculous/naive to route financial transactions via US companies.
Good thing is that tokenization & Digital Euro are coming at same time. Maybe it is a good timing
Nobody knows what they plan because they always forgot to say.
You can be sure:
zero privacy, no more hidding your assets
fully programmable crap
main reason is time/flow, they still managed only quantity - now, they can program expiry date Grunch always wanted.
full tracking
full control where you may use your assets
whatever is official will require KYC, bank account whatever, full link to anything one must use.
I wouldn’t worry much because Internet on most places of Earth is still crap…like 20Mbps average in Switzerland…unless one lives under cell tower in city.
EU is like mighty CCCP in 80-90’, they won’t be long here.
Most, if not all, western banks use old, “reliable”, obsolete banking system using COBOL most likely. We live in 21th century, and they still didn’t manage instant payments & outside opening hours payments.
Scandinavia allegedly cancelled their cashless payments.
Germanic nations love cash & hard assets. Especially, Germans still have that sour in mouth feeling what happened just 100y ago when a bread was 1M Marks
The main reason for push to CBDC is end of yet another imperium, full control of rioting poor & capital flight.
As usually, they will fail horribly, and 90% of population loses all. Rich already leff because signs of end are ecerywhere.
I suggest you to read “When money dies” by Adam Ferguson & principles of Ray Dalio.
History always repeat itself, and who doesn’t know history must repeat everything again.
My family lost everything twice in last 100y, yet previous generation didn’t learn :o)
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