The European Central Bank has given the “Green light” for the digital euro last Wednesday (14/7) thus taking the first step towards the launch of a digital version of the currency.
They claim that this step is part of the global effort to meet the growing demand for electronic means of payment and to address the increase in the use of cryptocurrencies.
The truth is that rulers of this world are actively pushing through legislation to stop the issuance of cash. This has been ”enforced” in a way, by the so-called pandemic.
The Governing Council of the ECB gave the green light to the exploratory phase of the project, which is expected to last 24 months, followed by a three-year implementation period.
The main objective of the initiative is not to leave digital payments to the private sector, especially if the use of conventional cash starts to decline, as in Sweden.
Our work aims to ensure that in the digital age citizens and companies continue to have access to the safest form of money, central bank money.ECB President Christine Lagarde
This is a clear sign that the technocrats are afraid of Cryptocurrencies as they understand that if people stop using their means of control (their money) they will lose their power and influence.
According to the ECB, the digital euro would still be euro: like banknotes but in digital form.
It would be an electronic form of money issued by the Eurosystem (the ECB and national central banks) to which all citizens and businesses would have access.
Here are seven questions and answers about what it is and how it is used, as presented on the European Central Bank page.
- Why a digital euro?
The digital euro would not replace cash but would work in addition to it. The Eurosystem will continue to ensure that you have access to cash throughout the euro area.
The digital euro would be a quick, easy, and secure means for your daily payments.
It could support the digital transformation of the European economy and actively encourage innovation in retail payments.
The ECB and the national central banks of the euro area are exploring the benefits and risks of the currency continuing to respond satisfactorily to the needs of Europeans.
Food For Thought: What does digital mean? Aren’t we already using digital euro? The salary that goes into your bank account every month is just a number on your bank account. No cash is being transported or whatsoever.
Payments are made via debit cards which again, reduce the number from your bank account. You can send money to other people’s bank wallets (mobile apps) and you can send money via a simple SMS.
Is there something else behind the ”Digital Euro” our rulers are not telling us about?
- What other benefits does the digital euro have?
The ECB claimed that the digital euro would combine the efficiency of a digital payment instrument with the security of central bank money.
It goes on saying that it [Digital Euro] would help to deal with situations in which people no longer want to use cash and would prevent reliance on digital means of payment issued and controlled by entities outside the euro area, which could undermine financial stability and monetary sovereignty.
Finally, it says that the protection of personal data would be a key priority so that the digital euro can help maintain confidence in payments in the digital age.
European rulers are afraid that they will lose power. If someone else [like the free markets/people] manages to control their own money and money supply their influence over people will be diminished. Then it moves on ”sucking the personal data finger”. Common stuff.
- When will it be ready?
In July 2021 a plan for a digital euro was launched. This does not necessarily mean that they will issue a digital euro, but they will look at it in greater depth. It would take at least five years to issue a digital euro.
The digital euro will not exist until 2026. Think about how much more the crypto-industry will be developed until then.
- What are the next steps?
Right now ECB is at the step of exploring what form the digital euro could take. This phase of the investigation will begin in October 2021 and will take about two years.
The next step will be to examine how the digital euro could be designed and distributed to traders and citizens, as well as the impact it would have on the market and any changes that would have to be made to European legislation.
When the investigation phase is complete, they will decide whether to proceed with the development of a digital euro or not.
The next phase would involve the creation and testing of possible solutions, in cooperation with banks and businesses that could provide the necessary technology and payment services.
The pilot work done so far shows that there are no significant technological limitations for issuing a digital euro and that many options are available for its design.
The new digital euro will not be just like fiat money as we know it. If it was, our rulers would just remove cash from the equation and the system would continue to operate as usual.
In this case, they are talking about how to distribute it, the effects it would have on the markets, etc. And, when talking about ”businesses that could provide the necessary technology” one can understand that the technology they’re referring to is blockchain or hashrgraph or similar tech.
- What could be its form?
Experts from the ECB and national central banks in the euro area have set out a number of key requirements for the digital euro, such as easy access, stability, security, efficiency, privacy, and compliance with the law. These requirements will also help them determine what the format of the digital euro will be.
The digital euro would be designed to ensure that it is compatible with private payment solutions, facilitating the provision of pan-European solutions and additional services to consumers.
- Will the ECB manage the digital euro?
The ECB is the guardian of the euro, either in banknote form or in digital form, on behalf of Europeans.
Ultimately, for the provision of digital euro services, they will probably rely on banks and other payment service providers, which they will closely monitor.
”We want to ensure that the value of our currency is maintained and that every form of digital euro is ultimately safeguarded and regulated by the central bank.”
- Is the digital euro a cryptocurrency?
ECB states that ”Cryptocurrencies are substantially different from central bank money: their prices are often volatile, making it difficult to use them as a means of payment or as a unit of value, and are not supported by any public body”.
…Difficult to use them as a means of payment… – Already debunked, Dash, Bitcoin Cash, and a big number of other cryptocurrencies are been used for payments.
…Difficult to use them as a means of [storing] value… – Everyone with the least financial literacy understands that fiat currency does not have the same value as it did 10 years ago. On the other hand, crypto’s value is increasing day by day.
The Digital Euro and other Digital Fiat Currencies are going to operate completely differently from what we know and understand. What do you think about the Digital Euro or the Digital Dollar etc? How are they going to affect people? Why are they doing this?