> The ECB also simulated individual holding limits of 500 euros, 1,000 euros and 2,000 euros, obtaining lower outflow estimates.
Seems like we'd be going into the same direction as the US did when it banned people from holding gold from 1933 to 1975 under Executive Order 6102 (https://en.wikipedia.org/wiki/Executive_Order_6102).
Not a great look on the financial value and stability of a currency in my very humble, non-expert opinion.
I think there are significant differences between the two events, with the major similarity being “there is a large change in regulation regarding how ordinary people handle money.”
In 1933 the major goal was to force ordinary citizens to trade their gold for cash, and then inflate the cash. That is why it became legal to hold gold again in 1975, the dollar value became disconnected from gold.
In modern Europe I don’t see the same rug-pull and a digital euro will continue to be just as valuable as a physical one. There are other valid concerns for going digital-only with currency.
This situations are not identical but if you, as a citizen, can't exchange virtual currency for some kind of token that represents the same amount of money in that currency then you are at the mercy of the banking system.
In my eyes, it also lowers the value and trust of said currency because it means that the system isn't able to fulfil IOUs.
Seems like we'd be going into the same direction as the US did when it banned people from holding gold from 1933 to 1975 under Executive Order 6102 (https://en.wikipedia.org/wiki/Executive_Order_6102).
Not a great look on the financial value and stability of a currency in my very humble, non-expert opinion.