By Vassos Angeletou In Athens, the board of directors of the European Central Bank will meet on October 26 in order to announce its crucial decisions, not only for the interest rates of the euro, but also for a historic project in the history of the Eurozone – the digital euro. It has been known… Continue reading From Athens, the...
Like money, but digital I imagine? Is it really that complicated in a world were we’ve all used phones and contactless cards rather than cash for a decade now and crypto is a thing?
Would be interesting if there was a limited supply.
Otherwise I don’t see the advantage, it is still being controlled by a central entity.
Depends. With a digital euro, you can safely stash away your money without having allowing private banks to make a profit out of it. Same goes with transactions. Firms like Visa or Mastercard won’t turn a profit out of it. Of course there are many disadvantages as well.
According to OP’s article, the ECB is specifically aiming to make the digital euro not viable for storing a bunch of money, so I don’t think that that’s a target use case.
Indeed, I remembered when the ECB first talked about it (2-3years ago) and I read the article diagonally.
But it still, most people could get rid of their cash bank account as most people earn less than 3k€net per month and just keep a saving account.
All in all, I’d still argue it’s a not-so-bad initiative, especially for small businesses who pay a hefty fee per transactions
And then where would lending and borrowing money come from?
It would still be banks. Owning a bank account would just not be mandatory anymore.