I'm pretty sick of irrelevant, "it's the technology" and "omg CBDCs are, like, so good" narratives. Cosmetically improve a digital pig is only so much fun... how about having better money?! (#1407453, #1333616)
The European Central Bank has announced timelines to launch two digital euros: a retail one for the general public and a wholesale version accessible to the same institutions that have access to central bank money today. While the former has been drawing most attention, the one Europe urgently needs is the latter.
Very cute, but no that's not the digital money that Europe "urgently needs."
A successful rollout of the wholesale digital euro will have three major benefits. It will enable corporate and other institutional euro users to access the benefits of tokenisation and digital ledger technology finance via their banks without the risks inherent in stablecoins and other untested private innovations.
Note the word "untested." and "risks inherent."
These include instantaneity of transactions, the potential 24-hour-a-day availability of use, the ability to programme tokens to support smart contracts that carry out self-executing and automatic actions on pre-set triggers, transparency and traceability
...in other words, a decent money for a digital age.
A wrapped CBDC ("commercial bank money") would, says the author "allow corporates and other institutional users to benefit from all the advantages of tokenised finance without the drawbacks of mainstream use of stablecoins"
Ugh.
No, Ms. Isabelle banker. This is NOT what Europe needsNo, Ms. Isabelle banker. This is NOT what Europe needs
archive: https://archive.md/8VnTx
Do they have any idea what they are talking about? What benefits are there to this so called "digital ledger technology" if you don't care about decentralization?? Did they not know that bank ledgers are already digital?
Instead of trying things that have already been tested on the market, use our untested money designed by bureaucrats. This will be the Trabant of money.
Lol Trabant of money - love it.
China and EU have leaned toward CBDCs while now Trump is leaning toward stablecoins which might indirectly prop up the petrodollar.
Governments are central to the provision of infrastructures and rule of law that enables (or doesn't) strong productive economies.
My bet is on China with its mercantile approach but the Trump approach cannot be ruled out.
Perhaps part of the world using USDTs for trade payments and another part using CBDC Yuan via mBridge?
Either way Europe looks like being a follower rather than a leader..and probably forced in the end to use both Chinese and US protocols more than any it develops itself.
Governments are crucial to the wealth of nations.
Good governments enable strong economies by providing rule of law and security.
Fiat money has become one of the most potent mechanisms of government power and can be used well or used badly.
Mostly fiat money is used badly and both debases peoples savings and is directly toward purposes which do not increase the wealth of the majority of citizens.
CBDCs further enhance to monetary power of central banks and thuis technocrats like the European central bankers and politicians think CBDCs will somehow fix the underlying problems in Europes economy- they won't.
Europe has become too burdened by technocrats and politicians and bankers - all of whom will further increase their power with CBDCs.
Europe is probably fucked but maybe some communities in Europe who still understand basic principles of money and economy can build BTC based alternatives and show by example there is a better way- for example this appears to be possible in Switzerland and maybe Germany and Portugal and perhaps some parts of Eastern Europe?