How a digital EURO may look like - page 3.

Poker Player

legendary

Activity: 1372

Merit: 2017

It is not clear to me. Yes, in theory they say they are concerned about privacy:

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A digital euro would therefore allow people to make payments without sharing their data with third parties, other than what is required by regulation. This differs from private payments, where services are generally offered in exchange for personal data that are then used for commercial purposes.

I actually think, as I think you point out as well, that privacy, if any, is going to be in short supply. What are they going to offer privacy for if a digital Euro is every controller's dream?

In any case, there will always be ways to escape. The ECB will know everything that anyone using the digital euro does but for illicit activities (or pure privacy of licit activities) other fiat currencies, gold and silver coins or cryptos will be used as in Sweden, where cash has practically disappeared.

Regarding the last question, it is not clear to me. I think that both the Yuan, the Dollar and the digital Euro are going to be launched at about the same time, although it seems that the Yuan will be the first, and, when it does, the US and Europe will not want to be left behind, so I don't think it will affect the exchange rate significantly.

Kittygalore

member

Activity: 868

Merit: 63

If the government continues to implement digital currency that has a way of tracking your movement, I am pretty sure that there isn't going to be a lot of people that are going to like it. Also, privacy is a commodity in this world full of technology that tracks you. Remove the ability to trace the movement of the people and make it favor the people.

paxmao

legendary

Activity: 2310

Merit: 1598

Do not die for Putin

I have read about the digital euro talks here and I think it is worth sharing with the forum what is the current thinking or the European Institutions:

Citizen´s consultation yield concerns about:

- Privacy - 43% of people are worried about this!!
- Usefulness and safety
- Integration in the current systems
- Efficient and cost-less

While the ECB acknowledges the need for privacy, they also say:

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Digital euro payments could guarantee different degrees of privacy[7], involving different trade-offs with other policy and regulatory objectives such as the need to combat illicit activities
<...>

In theory, digital euro payments could be anonymous if users’ identities were not verified when they access digital euro services. But this anonymity would provide fertile ground for unlawful activities and could prevent compliance with regulations on anti-money laundering and combating the financing of terrorism.

So, yes, privacy is going to be a concern, yes the institutions will not make digital euro anonymous per-se so I my view we should expect it to be very unlike cash and yes it does open the door to making cash restricted for very small payments and thus having a massive control over people.

My self-question is, up to what point a successful launch of a digital Euro, versus a Digital Yuan and a Digital USD may increase the attractive of these currencies and thus could impact the exchange rate beyond the usual interest rates / inflation / import-export components of the demand for currencies.

Topic: How a digital EURO may look like - page 3. (Read 369 times)