The Breakdown The European CBDC Debate Heats Up
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Nov 30, 2023 This podcast explores the current debate surrounding the design and implementation of a digital euro, including concerns about privacy risks, government control of commerce, and competition with crypto assets. It also discusses the expansion of China's CBDC pilot program and ongoing discussions on privacy solutions for retail CBDCs.
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ECB's Justification for Digital Euro
- The European Central Bank (ECB) is pushing for a digital euro, claiming it's needed to maintain control of the currency as cash use declines.
- They argue commercial banks might monopolize currency supply if the trend continues.
Digital Euro Debate
- During a public hearing, experts debated the digital euro, including a proposed 3,000 euro holding limit.
- Italian economist Ignacio Angeloni argued against it, citing a lack of clear evidence of current system malfunctioning.
Public Concerns about Digital Euro
- The biggest public concern is a digital euro replacing cash, enabling transaction monitoring.
- The ECB dismisses these concerns as conspiracy theories, further fueling public distrust.