Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Stay notified with free updates
Simply sign up Digital currency MEFT Digest – Directly delivered to your inbox.
European Central Bank Chief Economist Philip Lane said, “It is necessary for ECB to introduce digital euros” A recent lectureThe Passchal Donoho, president of the finance minister in the beginning of the last month, Talked A “high level of emergency” in progress in digital currency. Pay attention These comments show that Donald Trump’s tariffs are wary on the next geo -economic front even after most of the attention of Europe in Europe: a US is pressing to increase the domination of international payment in a US.
They are okay to be anxious. Trump’s executive order is in the jerk One Promoting the global use of the “Stabicons” issued in the US dollar. There is every reason to expect the muscles behind him. His Administration Payment is equipped with people who are deeply involved in the business of technology, such as Elon Mask (who first hit it with PayPal) and Howard Lutnik (who is Bond Stablecayen Issuer Tither). These disruptive will not see much surveillance with the Old Governing elite, but they agree on the strength and profit by maintaining US control over global payment.
For both political and technical reasons, this system is on a huge change. Dollar-based financial system weapons-notes that have cut access by opponents by rapid messages for bank transfers in the United States — encouraged searches for stories. Ideas include a coin and payment system managed by the BRICS countries. Technologies like stablecayans provide an instant, cheap and 24/7 option for the expensive, slow and complex inheritance of the correspondent banking.
So the fight for the dominance of the future payment system is underway – and America wants to win. The broad European masses may be gladly unknown. However, people in charge of the eurozone also decide that this war is a war for technical control over the economy that does not have to lose the EU. It is a basic inspiration for digital euro — a central bank-jerie government digital currency that is good and quickly suggested, the attraction of the dollar stablecayen will compete or surpass.
Apart from this, Europe is facing the danger we have faced for some time-as the “Libra” of Facebook is the proposed proposal for 2019 for electronic currency. Earlier, Europe had discovered that when Trump had banned Iran, Europe could not work autonomously because it was so difficult to process trade except US-free banks.
The real thing is that Eurozone is already overwhelmed by the American payment system. The ECB says that about two-thirds of the card is being paid in the eurozone, the ECB says; There is no national card-finance providing system out of 13 countries using the Euro. In this case, “When you go to buy milk, it is either [physical] Cash or Visa/MasterCard “, as a European central banker has left it this dependence on the rapidly spread of mobile applications.
If our stablecayans achieve widespread use, the final risk is “digital dollarization”, where sales platforms encourage buyers and vendors to pay, transaction and keep the balance in this national token. It undermines control of the domestic financial condition of the central bank.
All of this is ignored by those who are the belt of the digital euro project as a solution to search for a problem. However the symptoms are that their ranks are declining. So far, the digital euro project is protective, the mother of inventing the requirements, but it is welcome. Also overdue, however, positive arguments for digital euro are recognizing. An easy idea is that if a domestic digital payment technology, practically free, foreign payment suppliers can replace fees-charging, it is equal to the removal of transaction tax on Eurozone and with it.
Another is a digital euro can compete with dollar stabinen for international business. ECB is already looking for how to connect to non-euro coins. But it must go further. The retail model is currently worried with low thousand limits on how low in the digital euro wallet (to avoid banks leaving), for example, the inter -limited supply chain will not be required to pay smooth payment business.
The most important advantage, however, is a digital infrastructure for automatic digital agreement – payment “Rail” whose security guarantees by the central bank – creates a whole new technology economy. Compare it with the way smartphones bring the app economy to existence. Beyond autonomy, it is an opportunity for Europe to be left behind in technology innovation. Now is time for digital euros.
