
CBDC: Considerations for the Digital Euro - pauladgen
At a moment in time when we see major upheaval in the world around us, we are reminded that technology, innovation, and progress are what characterise the modern economy. Whether for finding solutions to complex problems or improving outdated aspects of our lives and society, we are always looking at what is next to keep evolving and improving.
At dGen, we have just released our latest report. It examines the various considerations that need to be taken into account when thinking about launching a new Central Bank Digital Currency.
In this report, we examine the potential next step for one of the pillars of our economy — money itself. Central Bank Digital Currencies or CBDCs are a hot topic in reserve banks across the world. Around 80% of world banks are at least exploring the idea. A CBDC could be the next innovation in money and nobody wants to miss the boat.
Two events seem to have triggered much wider interest in the topic. The first being the announcement of Facebook’s Libra and other private stablecoins, which could one day be seen as a rival to reserve currencies; these were met with disdain from regulators far and wide. The second event was the announcement of the DCEP, or digital Yuan, that the Chinese Government is working on. Both of these likely led to heightened interest in the topic, as Western governments try to avoid any encroachment from other currency contenders.
It is not all smooth sailing for CBDCs, however. There are many technological, societal, and budgetary factors to overcome before a CBDC will rival a major currency. But there does seem to be a desire to explore and find solutions to this set of problems.
At dGen, we have focused on a case for the ‘Digital Euro’. Looking at the unique construct of the Eurozone, which presents its own nuanced challenges. We always try to think about how this could impact EU citizens and not just the underlying economy.
======
gus_massa
What is the difference between a digital euro and a debit card?

------
question11
We have been running a digital EUR for a years... useful for quick payments
and settlement especially for fx...

