Good news: ECB delays CBDC launch to 2029

[Fortify]

Good news for residents of the Eurozone, but also for everyone else. The ECB had accelerated its headlong rush and intended to launch the digital euro this October.

Now the news has come out that they are postponing the launch until 2029, although they are not selling it that way; it seems they want us to forget what they said in March (about launching in October).

Eurosystem moving to next phase of digital euro project

But those of us who have been paying attention to the issue are not fooled. This is a huge delay that looks more like capitulation.

The long-awaited digital euro — the European Central Bank’s central bank digital currency (CBDC) project — is facing another delay, with its launch now projected for mid-2029.

I think they have chosen a four-year delay because they want to see if the government in the US changes. A CBDC that can only be used within the EU makes no sense.

Judging by how long it's taken them to roll out their ETA visa entry system, you can imagine something less important like this will take ten times longer than anticipated. Then again, any mention of digital currency is still always a boon for Bitcoin, as it'll always be classed as the original and most desired even if there is extra competition. It's also not necessarily competition because a CBDC can always sit alongside or replace the local currency eventually, which has never restricted the soaring growth of crypto so far. It is better that they get the project right from the outset though, otherwise it could shake confidence in any crypto asset if word spreads of failures or fraud.

[coupable]

The war knocks the european door. This is an important point that no one talked about when discussing the CBDC failure in ECB. The first thought that came to my mind is about who will be able to use this CBDC euro at the time of war.

There is no war in the literal sense, because who will attack the EU? If anyone thinks that Russia is ready to attack the EU, whose members are also members of the NATO alliance, without it ending very badly for them, then they are badly mistaken. NATO has tens of millions of active soldiers from 32 countries, and is there anyone in Russia stupid enough to oppose such a force when they cannot defeat Ukraine in three years?

Not only Russia couldn't defeat Ukraine in three years but an US operation in 3 January in Venezuela, showed that there are levels. It took the United States three hours to catch Maduro while it takes more than 3 years to Russia to catch Zelensky

Do you think that Russia wants to catch Zelensky at first place? I don't think so. Changing the regime in Ukraine is not in favor of Russia. Russia needs a constant pretext to maintain a state of war, which gives it more opportunities to annex more territory. I don't think there's anyone better than Zelensky, who has dragged his country into a proxy war of attrition. It doesn't mean Zelensky is agent for Russia, but he gave it the reasons to start a war.

[Don Pedro Dinero]

It took the United States three hours to catch Maduro while it takes more than 3 years to Russia to catch Zelensky

This is a bit off topic, but since you mention it, you could compare it to the United States invading Iraq for oil. The relationship between effort/time/resources and results, if we compare it, is brutal.

Judging by how long it's taken them to roll out their ETA visa entry system, you can imagine something less important like this will take ten times longer than anticipated. Then again, any mention of digital currency is still always a boon for Bitcoin, as it'll always be classed as the original and most desired even if there is extra competition. It's also not necessarily competition because a CBDC can always sit alongside or replace the local currency eventually, which has never restricted the soaring growth of crypto so far. It is better that they get the project right from the outset though, otherwise it could shake confidence in any crypto asset if word spreads of failures or fraud.

I agree with most of what you say, except for the last part. I just hope they finally abandon this crazy project. If you had asked me six months ago, I would have said there was no way they would abandon it, but today I think it's more likely.

[Abiky]

That's right, and that's what I said in the OP. Besides, in another post I put a link showing that even though Euro Stablecoins are available today, they're not even in demand within the EU. EU citizens buy and use USD stablecoins. If that's the case now, there's no way a Euro CBDC or stablecoin is going to be in global demand.

With that in mind, the EU would be nothing but doomed. But be aware, that the US's recent actions are forcing other countries to move away from the USD. If the USD loses momentum, it might as well lose its position as the world's reserve currency. The "de-dollarization" process is happening as we speak.

Without the USD in power, the EUR will take the reigns as the leading currency. It is currently the "second-largest" currency in the world. Other countries are already exploring the possibility of a CBDC launch, so why can't the EU do the same? Of course, it's not what the people want. But governments will continue full-speed ahead no matter what. It has always been their game. I hope decentralization, privacy, and freedom prevail in the long run. Only time will tell...

[SquallLeonhart]

This is not going to happen until they are 100% sure that it is done correctly. That is a good thing, because instead of doing something half-done, they are waiting until they can do it perfectly and not face any bad consequences when things go south. Remember CBDC is government tied, which means, there can't be any hacking, scams, issues in it and it has to be perfect and without any issues. Thankfully (for them, not us) it will be heavily centralized, so they can still work on it after it's released.

[fillippone]

Let's say that the Digital Euro has been postponed, and probably will never see the light, but the EU has given birth to some other dystopic rules, like the DAC8, as a mass surveillance mechanism to be used against European citizens, even when they are outside Europe. They learnt from the best in the field: US regulators, applying their laws even to foreign subjects.

[Abiky]

This is not going to happen until they are 100% sure that it is done correctly. That is a good thing, because instead of doing something half-done, they are waiting until they can do it perfectly and not face any bad consequences when things go south. Remember CBDC is government tied, which means, there can't be any hacking, scams, issues in it and it has to be perfect and without any issues. Thankfully (for them, not us) it will be heavily centralized, so they can still work on it after it's released.

No hacks or scams? That's impossible. Especially when there's nothing 100% secure in this world. One way or another, CBDCs will have their own flaws/vulnerabilities. The ideal solution would be to make the CBDC's blockchain act as a L2 or sidechain from an existing public blockchain. In other words, rely on the security of an existing crypto such as Bitcoin or Ethereum. Like the Digital Euro living on a sidechain which inherits Bitcoin's security properties. Or better yet, back the Digital Euro with Bitcoin to strengthen its value (very unlikely to happen). The future holds many mysteries.

2029 is only 3 years away, so I seriously doubt the ECB will be able to have everything ready by then. It's going to take a lot more than just 3 years to design a system that's secure and reliable for the masses. Let's hope this never becomes a reality during our lifetime.

[X-ray]

This is not going to happen until they are 100% sure that it is done correctly. That is a good thing, because instead of doing something half-done, they are waiting until they can do it perfectly and not face any bad consequences when things go south. Remember CBDC is government tied, which means, there can't be any hacking, scams, issues in it and it has to be perfect and without any issues. Thankfully (for them, not us) it will be heavily centralized, so they can still work on it after it's released.

I don't even think the concept CBDC is even good and that maybe it will never see the light. Stablecoin already exist that allow them to control at smart contract level, I don't know why any country need CBDC in the first place.

Just print and tokenize that thing and get done with it. Since we already have stablecoin and proven mechanism and protocol, they just need to create reserve and done.

[Don Pedro Dinero]

Let's say that the Digital Euro has been postponed, and probably will never see the light, but the EU has given birth to some other dystopic rules, like the DAC8, as a mass surveillance mechanism to be used against European citizens, even when they are outside Europe. They learnt from the best in the field: US regulators, applying their laws even to foreign subjects.

In any case, if I am going to have DAC8, I prefer a Europe with DAC8 and without CBDC than with both mass surveillance and control mechanisms.

[avp2306]

Let's say that the Digital Euro has been postponed, and probably will never see the light, but the EU has given birth to some other dystopic rules, like the DAC8, as a mass surveillance mechanism to be used against European citizens, even when they are outside Europe. They learnt from the best in the field: US regulators, applying their laws even to foreign subjects.

They may delay the launch of CBDC, but that DAC8 somehow shows that EU is trying to double their monitoring done.

Trying to extend their tax reporting in Europe may follow the follow or extender their jurisdiction same with US regulators do.

What they do is I think more about to possibly control than they try to innovate things, this rebranding they do makes everything so weird.

[Abiky]

I don't even think the concept CBDC is even good and that maybe it will never see the light. Stablecoin already exist that allow them to control at smart contract level, I don't know why any country need CBDC in the first place.

Just print and tokenize that thing and get done with it. Since we already have stablecoin and proven mechanism and protocol, they just need to create reserve and done.

Well, governments prefer to have their own currency which they can control. And stablecoins are not suitable for such purpose. It's why many governments decided to "reinvent the wheel" by designing their own digital currency from scratch. With CBDCs, they will be able to have a better grasp of the economy than the existing credit/debit card system. Even more so than cash. Governments will gradually introduce CBDCs alongside cash until people get used to them. The EU may be lacking behind other countries in this regard, but they still have a chance of "digitalizing" the Euro. Perhaps, they are waiting for the USD to collapse to make their move.

I certainly don't want to live in a future where money is completely digital. I mean, where's the privacy and freedom in that? At least, we have Bitcoin and Monero to break free from the system. One can only hope they don't get compromised in the long run.

[Don Pedro Dinero]

Well, governments prefer to have their own currency which they can control. And stablecoins are not suitable for such purpose. It's why many governments decided to "reinvent the wheel" by designing their own digital currency from scratch.

Stablecoins in their current form are run by private companies, and the government can regulate them but they are more similar to payment systems like VISA than to CBDCs.

With CBDCs, they will be able to have a better grasp of the economy than the existing credit/debit card system.

Right.

The EU may be lacking behind other countries in this regard, but they still have a chance of "digitalizing" the Euro. Perhaps, they are waiting for the USD to collapse to make their move.

I think you're wrong about that, mate. I don't have much faith in European bureaucrats, but I don't think they're stupid enough to wait for the dollar to fall before the euro. Precisely because of this, I think they are fully aware that a future with CBDCs threatens the euro, because we don't want a euro-pegged stablecoin in Europe, as I have stated in a couple of posts in this thread. There is no demand for euro stablecoins in Europe.