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.

[Synchronice]

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.

Why wouldn't Russia want to catch Zelensky? They call him a criminal, fascist and in their society, they have a valid reason to catch him by labelling him with these words. I don't think that Russia needs war. Won't it be better for them to have an Ukraine as their ally, like during the era of Soviet Union?
Today we live in a world full of crazy leaders. Two people, Putin and Trump, who want to build empires. It's even more sad that a country, as powerful and rich as the United States of America is, didn't have a better candidate for presidency other than Donald Trump.

[coupable]

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.

Why wouldn't Russia want to catch Zelensky? They call him a criminal, fascist and in their society, they have a valid reason to catch him by labelling him with these words. I don't think that Russia needs war. Won't it be better for them to have an Ukraine as their ally, like during the era of Soviet Union?

Do you think which one is better? Having Ukraine as a neighbor ally? Or annex it partially/totally and benefit from all its resources? Zelensky offered the best gift to Russians to expand its space of influence, especially in borders with the west pole.

Today we live in a world full of crazy leaders. Two people, Putin and Trump, who want to build empires. It's even more sad that a country, as powerful and rich as the United States of America is, didn't have a better candidate for presidency other than Donald Trump.

It's not a new scenario that big powers work to build empires. This is commun to happen during civilisations history. If there are no Trump no Putin, there should be other leaders working for the same goals. i don't see they are crazier than Hitler.

[Luke3bird]

Do you think which one is better? Having Ukraine as a neighbor ally? Or annex it partially/totally and benefit from all its resources? Zelensky offered the best gift to Russians to expand its space of influence, especially in borders with the west pole.

It's not a new scenario that big powers work to build empires. This is commun to happen during civilisations history. If there are no Trump no Putin, there should be other leaders working for the same goals. i don't see they are crazier than Hitler.

None of these will happen as Putin lived in his dream that is unrealistic and he failed to occupy and annex Ukraine within 3 or 7 days. Now it is almost four years and through this bloody and expensive war against Ukraine, with time and abundant human loss, he already made the Ukrainians mostly turn to very hate Russia.

This means Putin made his terrible decisions that changed Russia and Ukraine entirely and these two nations, there people will hardly become allies or friendly neighbors in the near future. Maybe if something changes, maybe one more hundred years, these nations will become allies with each other like how Germany, Italy, and Japan became allies of the USA after the World War II.

It won't happen soon and it will take like 50 or 100 more years but with a mandatory condition that Russia must have its internal national change.

[Abiky]

Why wouldn't Russia want to catch Zelensky? They call him a criminal, fascist and in their society, they have a valid reason to catch him by labelling him with these words. I don't think that Russia needs war. Won't it be better for them to have an Ukraine as their ally, like during the era of Soviet Union?
Today we live in a world full of crazy leaders. Two people, Putin and Trump, who want to build empires. It's even more sad that a country, as powerful and rich as the United States of America is, didn't have a better candidate for presidency other than Donald Trump.

You forgot to mention China's Xi Jinping. He is very obsessed with Taiwan. Xi, alongside Putin and Trump, will lead us to WW3. Europe is already alarmed by the rising expansionism of the US, Russia, and China. It's beginning to evaluate how to increase economic independence to survive on its own. The launch of a CBDC will allow the EU to gain greater control/self-sovereignty over its economy. And with increased defense spending, the EU can prepare itself against future threats from its rivals.

For the EUR to gain prominence, however, the USD needs to fall. It's already happening as we speak. Say bye-bye to the US and hello to the EU as the world's leading superpower. Just my two sats.

[fillippone]

For the EUR to gain prominence, however, the USD needs to fall. It's already happening as we speak. Say bye-bye to the US and hello to the EU as the world's leading superpower. Just my two sats.

As an European, I really struggle seeing them to prosper while the US falls. We are a US colony, and we are tied to them in good and bad fate.
I would like the Europe to gain power in the world balance of power, but I struggle to se how that could happen.

[Free Market Capitalist]

As an European, I really struggle seeing them to prosper while the US falls. We are a US colony, and we are tied to them in good and bad fate.
I would like the Europe to gain power in the world balance of power, but I struggle to se how that could happen.

I regret to share this opinion. Europe has no influence on the world stage today.

Although Abiky is referring specifically to the USD vs. the Euro, which is part of Trump's premeditated plan.

Why Donald Trump’s plan to weaken the dollar is flawed

I am posting this article not because I agree with its conclusions, but to show that Trump wants a weak dollar.

[fillippone]

As an European, I really struggle seeing them to prosper while the US falls. We are a US colony, and we are tied to them in good and bad fate.
I would like the Europe to gain power in the world balance of power, but I struggle to se how that could happen.

I regret to share this opinion. Europe has no influence on the world stage today.

Although Abiky is referring specifically to the USD vs. the Euro, which is part of Trump's premeditated plan.

Why Donald Trump’s plan to weaken the dollar is flawed

I am posting this article not because I agree with its conclusions, but to show that Trump wants a weak dollar.

A weak dollar is nonsense.
And a weak dollar means a strong Euro, making European goods particularly expensive for the US. This is again a problem for the EU, whose exports to the US constitute the backbone of their economies.

[Abiky]

I regret to share this opinion. Europe has no influence on the world stage today.

Although Abiky is referring specifically to the USD vs. the Euro, which is part of Trump's premeditated plan.

Why Donald Trump’s plan to weaken the dollar is flawed

I am posting this article not because I agree with its conclusions, but to show that Trump wants a weak dollar.

Trump's plan to weaken the USD will be a wish come true for the EU. I understand the US President wants to make domestic manufacturing (exports) cheaper. But doing such a thing, will undermine the USD's ability to serve as the world's reserve currency. Meanwhile, the EUR continues to remain strong against the USD. At the time of this writing, 1 EUR is worth $1.17 USD. Who's to say it won't rise any further in the long term? With uncertainty surrounding the FED, Trump's unpredictability, and wild tariff rates, anything's possible.

Either way, 2029 is such a short amount of time for the launch of the "Digital Euro". I think the EU will continue to extend the date, until it ultimately gives up. One can only hope...