EU is going full steam digital €
they list the reasons it could become necessary to issue a digital € and the most interesting reasons are
-avoiding risks of unregulated payment solutions
-preempting uptake of foreign currencies
regarding the first one I assumed this was directed towards libra. but then again... if they ever let libra happen they would regulate the hell out of it.
so... towards what is this official policy of the EU aimed at? what is an unregulated solution? the only real unregulated imaginable is bitcoin. imho the EU is acknowledging Bitcoin as a serious competitor.
regarding the second one I think this aimed towards Chinese or other cbdc´s that are being developed. this is remarkable! the EU is officially acknowledging game-theory of global financial scale: "we can't let them have all the global market"
the race has started. they all have to follow. strategically a necessity. them are studying bitcoin very closely I am sure.
here are the other reasons the give:
-complementing cash and deposits
-creating synergies with payment industry
-supporting digitalization in EU economy
-ensuring access to central bank money
(last one is interesting. what kind of scenario is this one aimed at?)
https://www.ecb.europa.eu/pub/pdf/other/Report_on_a_digital_euro~4d7268b458.en.pdf#page=4I just quickly looked through, its an interesting read.
An infrastructure with some decentralisation could be used to provide a bearer digital euro, where either end users, or supervised intermediaries acting on their behalf, would verify any payment. This could be achieved through either of the following two models, which could also be combined:64
(i) Direct end-user access to the bearer digital euro;
(ii) Hybrid bearer digital euro (also allowing wholesale transactions) and account-based infrastructure.
a bearer CBDC?
Different technical solutions could be envisaged for implementing such a solution, in particular enabling the central bank to have administrator access through remote access capabilities to the digital euro systems operated by supervised intermediaries. More advanced techniques could be used whereby cryptographic proof is computed by the systems to prove to the central bank that the amounts recorded remain valid.
Finally, to ensure consistency of the amounts and avoid the abovementioned risks for end users, the latter could be given the possibility to automatically check, through their devices and applications, that their balances correspond to what is recorded in the system of the central bank. To ensure that no unintended transaction can be originated by an intermediary on behalf of a user, the end user could automatically send a request to the central bank upon initiation of a transaction (using a private signature not known to the intermediary) approving initiation of the transaction. The end user would then receive confirmation from the central bank system that the transaction had been processed.
money is going digital. there will be
-bitcoin, the only real digital scarce asset
-50k shitcoins
-10 or 20 CBDC (or if the go full shitcoin we will have 160 CBDC soon...)
should bitcoiners worry about competition in the digital scarcity game?
Requirement 4 (R4): monetary policy option. If considered to be a tool for improving the transmission of monetary policy, the digital euro should be remunerated
23) at interest rate(s) that the central bank can modify over time
i have read in there somewhere that they wanted to peg it to the overall interest rate which is 0% to -0.5%
so, no ... thank you.
https://www.ecb.europa.eu/euro/html/digitaleuro-report.en.htmlalso see reuter link:
https://www.reuters.com/article/us-ecb-currency-digital/ecb-must-prepare-to-issue-a-digital-euro-panetta-says-idUSKBN26N0S0?utm_source=reddit.comA CBDC is about 2 thing, power, and more money for the capital owners.
CBs represent the corporates, and in the CBs eyes the government is not doing enough to help these corporates. If it was up to the CBs there would be constant never ending fiscal responses, this would be done in a number of ways, but of particular importance is giving money to the people. CBs want inflation, because inflation helps capital owners in a massive way. Monetary responses (which is all a CB can do) have reached their limits, so if we are to continue the global ponzi we need a fiscal driver.
Now, despite what everyone thinks about CBs, CBs can't print electronic money (only the private banks can do this, and only through lending). CBs can only print reserves (bank capital), and physical cash. Now physical cash ain't going to cut it, for the simple reason being that it is anonymous, and this reduces the power of authority so no good. Plus dealing in physical is a pain in the ass. Enter the CBDC.
With a CBDC, governments now take a back seat in regards to the economy because CBDCs give the CBs the ability to create fiscal responses. And a CB doesn't have to clear its spending plans in the senate, or any other checks and balances inconveniences related to elected officials. When CBDCs arrive, you will see this helicopter money that everyone used to talk about and every citizen and non citizen alike will be flooded with this new "electronic cash". Be prepared for that inflation, because when a CBDC actually happens you'll see your inflation.
So in summary, CBDC will make CBs very powerful, and kind of like an alternative government in their own right. They also want inflation, and lots of it, so helicopter money will be a thing. The good news for us hodlers (capital owners) is that BTC along with other assets will head north and never look back. The bad news is that the people (labor) will lose out in a massive way, but they'll welcome it because it will be like a UBI. Little do they know that the inflation tax will make them worse off and the entire economy will become zombiefied with the cessation of the last remnants of capitalism. This is the decline of the west.
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