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End of cash in Europe? Rather digital euro than cryptocurrency
4pm ▪ 4 minute read ▪ by Mikaia A.
The European Central Bank (ECB) is actively working to curb the “cryptocurrency” phenomenon by launching its own digital euro. During the Money20/20 conference, Evelien Witlox, Director of the Digital Euro at the ECB, expressed the institution’s desire to see this electronic currency on the market, a solution deemed necessary in the face of the decline in the use of cash and the increase in digital alternatives. The ECB wants to move forward cautiously but with determination.
A digital euro (instead of cryptocurrencies) to adapt to new habits
No, the European Central Bank has not yet changed its mind opinion regarding bitcoin and other cryptocurrencies. Second a Crypto.News publicationEvelien Witlox, a leading figure in the institution, took advantage of her speech at Money20/20 to outline the potential implications of a digital euro. Noting a significant decrease in the use of cash in Europe, he implied as much a digital euro could become essential.
According to her, in cities like Amsterdam, “only one in five transactions is still carried out in cash”, which pushes the ECB to seriously consider this possibility. monetary transformation. However, he stressed that although investment in the e-euro is very likely, it is not yet a final decision.
The digital euro would be an electronic version of cash, maintaining its legal tender status. This change would ensure that all merchants accepting digital payments would have to accept this new form of currency.
The initiative not only aims to modernize the payment system but also to guarantee a greater one economic security AND independence from foreign payment systems.
Witlox underlined that it will benefit citizens by offering them a new, secure and accessible payment method while strengthening The economic sovereignty of Europe faced with the invasion of foreign payment solutions. Do cryptocurrencies have a role in this?
Security and privacy protection in the foreground
The ECB does not hide that the digital euro is partly a response to the fear that the digital euro could growing dependence on non-European payment services could compromise the security of financial transactions. In fact, cryptocurrencies are often labeled as unsafe by our governments.
Evelien Witlox has expressed clear concerns about this dependency, insisting that a digital euro could strengthen economic sovereignty and ensure the security of both public and private payments. Enough to allow a duel between this asset and bitcoin.
The ECB is ready to guarantee that this new payment method is inclusiveenabling everyone to participate in the digital economy without barriers to access.
In terms of security and privacy, Witlox was very clear: the ECB does not want to become a Big Brother of financial transactions. Privacy protection and security are top priorities, as are similar technical solutions “privacy by design” will be implemented.
This includes options like offline digital euros, which ensure that even without an internet connection, transactions remain confidential.
The goal is avoid the creation of a programmable currency, which could potentially be used to monitor or control users. Otherwise it would be pure economic totalitarianism.
In summary, the e-euro presents itself as a modern solution to the challenges posed by the decline in the use of cash and the rise of cryptocurrencies, while strengthening Europe’s security and economic sovereignty.
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Mikaia A.
The blockchain and cryptocurrency revolution is underway! And on the day when the impacts are strong and the most vulnerable economy in the world is affected, against all hope, you will say that I was for what I chose
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.