Discover in video Nathalie Janson’s prediction about the digital Euro. According to her, it will not be available directly via the European Central Bank but via commercial banks. The reflections presented in this series of predictions also touch on other macroeconomic ideas. We invite you to discuss each prediction by sharing your opinion with us.
The digital Euro will not be available from the central bank, but via commercial banks.
A look back at the development of digital central bank currencies (DCBMs)
Since the announcement of the Libra project, central banks have been rushing to develop their own digital currencies. China is by far the most advanced with first experiments such as the distribution of its digital yuan in a pilot city. But other countries are not left behind. Numerous announcements have been made in recent months, with Australia, Sweden, Germany and France developing projects. At the beginning of November 2020, the European Central Bank launched a public consultation on the digital Euro.
China, by rapidly developing its digital yuan, intends to take advantage of the first entrant advantage. This would allow them to rapidly internationalise their digital currency.
In response, the Americans have also launched a fundamental reflection on the possibility of a digital dollar.
👉 Learn more about digital central bank currencies
Impact and dissemination of the digital Euro
According to Nathalie Janson, this digital Euro would be „both a competitor of cash and dematerialised means of payment linked to bank accounts such as credit cards, PayPal, Apple Pay, Lydia or PayLib. The degree of competition will depend on the level of traceability of transactions, with the possibility of possibly having an offline/online version of the digital Euro. »
2 distribution models would exist:
The currency would be issued by the Central Bank and accessible directly by individuals. This would mean that individuals would have to have an account or wallet opened with the Central Bank. The risk is that the public would prefer „the digital version of the Euro at the expense of cash but especially at the expense of bank accounts. »
A digital currency still issued by the central bank and accessible via commercial banks
If the first solution were preferred, it would mean that individuals would have to have an account or wallet opened with the Central Bank. The risk being that the public would prefer „the digital version of the Euro at the expense of cash but above all at the expense of bank accounts. „This could result in a drop in bank deposits which would make it difficult to provide credit.
The second solution reduces the risk of substitution of the digital Euro for cash and other means of payment. And therefore to preserve banking stability.
👉 Is there a risk that cryptocurrency exchanges will replace banks?
Do you think, like Nathalie Janson, that the digital Euro Bitcoin Superstar will only be available from commercial banks?
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An association created in 2011, the Institut de l’Iconomie is an independent think tank that analyses the issues, the balance of power, as well as the risks and opportunities in order to design a possible future. Its members often have opposing sensitivities, which requires them to refer to the rigour of foresight, hence the formation of predictions.
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The speakers in this webinar are therefore not from the „crypto-sphere“ and do not necessarily share the ideals of the cypherpunks or the majority of people who possess crypto-actives. However, it is always interesting to see how the future of the cryptomatics industry is perceived.
You are invited to vote in order to give your opinion on each prediction, but also to debate, comment and make your views known. Click here to view other predictions by members of the Institute of Economics.
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