According to a press-release for the President of the European Central Bank (ECB), there are important lessons that we can learn about the future of payment options from the past. Once metal coins were replaced by paper money, and eventually FIAT money will be replaced by their digital counterpart.
According to the press-release, the Covid19 pandemic has accelerated these plans, as there is an intense need for more forms of contactless payment. Such payments have increased with 8.1% to 98 billion in 2020.
These circumstances are perfect for the launch of a digital Euro, according to Lagarde, and this currency will be issued by a central authority and regulated by it, so that people would view it as trustworthy, as a modern currency is worthless without trust.
Lagarde, however, has little faith in cryptos that are not issued by a central authority. She views non-stablecoins as risky due to the anonymity of the issuer and their volatility. On the other hand, she also views stablecoins as risky as well, due to the fact that if widely adopted they could lead to an incapability to absorb losses for the issuer if they fail to guarantee the stability of the currency. Currencies like Libra, for example, could become a problem for the technological autonomy of the Union and raise concerns about the use, or misuse, of their users’ data.
Source
This change was inevitable, I think, but not everyone will like it.
According to the press-release, the Covid19 pandemic has accelerated these plans, as there is an intense need for more forms of contactless payment. Such payments have increased with 8.1% to 98 billion in 2020.
These circumstances are perfect for the launch of a digital Euro, according to Lagarde, and this currency will be issued by a central authority and regulated by it, so that people would view it as trustworthy, as a modern currency is worthless without trust.
Lagarde, however, has little faith in cryptos that are not issued by a central authority. She views non-stablecoins as risky due to the anonymity of the issuer and their volatility. On the other hand, she also views stablecoins as risky as well, due to the fact that if widely adopted they could lead to an incapability to absorb losses for the issuer if they fail to guarantee the stability of the currency. Currencies like Libra, for example, could become a problem for the technological autonomy of the Union and raise concerns about the use, or misuse, of their users’ data.
Source
This change was inevitable, I think, but not everyone will like it.
