The Digital Euro: Decoupling from PayPal, VISA & Mastercard

www.ecuradio.eu The Digital Euro: Decoupling from PayPal, VISA & Mastercard - Ecu Radio

The Digital Euro aims to be an electronic equivalent to banknotes and coins, allowing Europe to do its own e-payments. Let's explore this.

From the 7th of April to the 9th, the European Central Bank spoke extensively about the Digital Euro, expressing hope about its potential and publishing an update of its rulebook. Its President, Christine Lagarde, also called for it, wishing to end European reliance on international payment solutions providers such as VISA, Mastercard, PayPal, Stripe and others.

31 comments

I'm really hyped for this but in typical EU fashion it's taking years.
- Not to mention how long it will take for cardreaders & ATMs / cash machines to be updated to work with this.
  I can see this taking a long time, so as long as they move the whole infrastructure forwards, together, then it will better than developing the "eumasterpayvisapalcard" and then thinking about the end devices...
- Unfortunately they bought into this right around the bitcoin hype, so I expect the entire project to become a wasteful slog that nobody has any real use for, except for maybe gambling on exchanges, like most cryptocurrencies.
  
  A digital euro that requires no banks or payment processors definitely has a use. It's all the benefits of cryptocurrency but with the backing of a central bank.

I read the article.
Boiled down, it is essentially a direct exchange between physical (money in your bank account) currency and a fully digital counterpart, at a 1 to 1 ratio, that can be done both ways.
Unlike crypto, it is to be issued by a central bank and will have to be accessed through properly licensed bank entities or similar institutions.
This can work. I want to read the full rule book now.
- So it's like Fiat currency, that can be accessed digitally through your banking app, and it's convertible to Fiat, but it's not Fiat
  Can you dumb it down what I'm missing here?
  
  No need to dumb it down; you got the gist of it. But I'm going to do my worst to make my "explanation" as ridiculous as possible.
  get bank account
  get euro monies in said account
  go to bank again
  open linked account for digital euro monies
  from bank app, convert euro monies into digital-euro monies
  1 euro monie = 1 digital euro monie
  send digital monies to anyone in Europe with no middle man, instantly; receive monies, too.
  buy and sell with digital monies, in Europe, no assle
  have digital Euro monies in linked account
  want to buy breakfast with Euro monies
  convert digital Euro monies to euro monies
  1 digital euro monie = 1 euro monie
  go to ATM, insert card, take euro monies out, get euro monies bill
  go to cafe, get coffee and croissant, pay with euro monies
  I laughed too many times writing that. I'm ridiculous and deserving of your scorn.
  I'll see myself out.
  
  it's basically the numbers appearing instantly instead of waiting 3 days
  
  Exactly like this. There is such a system in Nigeria with the e-Naira, and there was a pilot program in the Eastern Caribbean with their dollar. It works pretty well, and is not that complicated to write and maintain. I'm taking from experience as I was part of the team that wrote that. I think I'm no longer under NDA because the company I worked for does not exist anymore, so if anyone has questions I can shine some light on how it works under the hood.

Why do they make it so confusing? In one sentence they talk about replacing visa and stripe and making a euro payment processor, and then they also want a separate wallet for some reason? Even tho our bank accounts are obviously already "digital" euros. Also it seems they want to comoete with Wero??
- Their wording clearly suggests they might be pushing a single candidate, yes.

They spoke extensively about it, because relying on US companies is relying on Trumps sanity...
They should just use existing blockchain and publish an EUR pegged stablecoin except with official backing of the central bank
- This. Take the Tether model but with issuance directly from the central bank and guaranteed conversion to cash.

about fuckin time

@[email protected] @[email protected] FYI
- @[email protected] FYI

Sounds less like a replacement for Visa/MasterCard and more like yet another bullshit crypto scam.
- No. It's similar to Gnu Taler.
  It also says it (indirectly) in the article:
  According to the ECB, the Digital Euro is “Central bank money in digital form”. In other words: the Euro, except digital.
  Behind this truism, the ECB mean that it would be money, still issued by the ECB, but not taking the aspect of a banknote or a coin, available free of charge for all.
  So no blockchain. If implemented correctly this could be not just a replacement for Paypal et al.
  
  No blockchain, but I bet it will be tokenised and put on a blockchain.

31 comments