technocritEuropean banks to launch euro stablecoin in bid to counter US dominance
Why? Is so dumb.
The market can stay irrational with various crypto currencies longer than you can stay solvent, so you fight irrationality with your own brand of irrationality.
BarbarianThis is even dumber when you consider we’re ~2 years away from the launch of the Digital Euro. As easy and fast to transfer as a cryptocoin with none of the drawbacks. No Blockchain nonsense, backed by banks, transactions can be cancelled and refunded just like any digital transaction, and standardized to all EU banks.
This just sounds like a regular bank transfer to another European bank…input recipient in your self-service online banking and press “transfer”…beep boop done.
The digital euro will be centralized on the European Central Bank, so the transactions do not depend on some local banks. It’s in direct competition with the banks themselves. But yeah, not that big a difference for the end user imho
exuBut a central bank shouldn’t be in competition with its customers, the other banks. That’s massively stupid
It is. That’s why banks have publicly backed Wero in favor of the digital euro. It might also be a reason for the relatively low limits of the digital euro wallets, but that’s just my speculation.
Well honestly I’m not quite sure I would not welcome the removal of some of the influence the banking sector has on us all. It is very predatory in nature all the lending and such. Additionally money is a limited resource so it is maybe not the worse thing to « nationalise »
Surveilence
There will be the exact same level of surveillance, it’s still just run by banks so there’s no difference there.
Not really. I was scammed for a few hundreds of euro’s last year. I knew the company, I knew the account but the bank was incapable of reacting because of ‘reasons’.
They know where the money went but they can’t follow where it got transferred to. So they can only follow one transaction and after that it’s gone. (Except when you get a court order)
That’s exactly the problem. “Reversible in theory” doesn’t mean much if banks can’t or won’t act fast. Without real-time intervention and enforcement, the protections are mostly on paper, by the time they move, the money’s already gone.👌
For the past 11years I only transact with Crypto and I feel very much comfortable because any mistake I make is traceable and also refundable with zero charge. Almost everyone here in US has adapted to Crypto. The bank is just a reflection of the bad government. 👎
For real, isn’t this allowing them to have much more control over what you have in the bank? Preventing bank runs as they call it(aka blocking withdrawals)
A regular transfer takes at least some hours/days. With digital currency the transfer is instant.
Apart from that, surveillance. There’s a (de)centralized register that shows how much money there is ti be found on any account at any given time.
The existing Euro does not have a proper system for day to day transactions. Transfers are currently handled by SEPA, which are only suitable for things like bills. This means that a lot of people especially in less developed EU nations end up using an international bank card, i.e. MasterCard/Visa for day to day transactions.
Details are somewhat vague, but the ECB’s website seems to have many good assurances. This even includes strong privacy features, such as offline capabilities and cash-like privacy.
FAQs on a digital euro - www.ecb.europa.eu/…/ecb.faq_digital_euro.en.html#…
Late respons, but anyways: the big advantage over regular bank transfers is you can use it like a virtual card without Visa or Mastercard. In essence, the biggest draw is pushing US companies out of the EU financial system.
I think it’s weird people would want that USA stable coin. It’s a government controled coin linked to a central bank controlled currency for crypto currency where one of the big arguments for using it is being free of government controlled currencies and central banks. But I guess many like to pay tribute to the new overlord.
It’s not that dumb. There’s a market for this, if you want it or not.
And if you’re going to use crypto, it’s better they use a currency that’s not tied to the currency of an unstable country.
Also, the EU is looking to make a digital Euro anyway, which will not be a crypto coin as you know it, but a way to take power away from VISA and Mastercard, which will save European countries for billions each year.
The digital euro is where it’s at! I can’t wait to give billions of dollars worth of middle fingers to American credit card companies.
ideonekWell, I against the idea, but now you got me thininiking.
The purpose is to boost European companies. Right now they pay between 1-3% of every single transaction.
Next, banks will also get hit. If a digital Euro exists, bank transactions will go down, meaning less transaction fees for both consumers and companies.
Then there’s convinience. People will be free to transfer money across the continent, and also to friends and family without any costs (some countries have that, some dont).
VISA and MasterCard is just a very unneccesarry middle man in 2025.
Who takes the bill then? Well, the EU does, because they work for the people, and the money gained is much larger than money spent. Net positive matematics.
Then there’s convinience. People will be free to transfer money across the continent, and also to friends and family without any costs (some countries have that, some dont).
I’m not sure about that part. If GNU Taler is to serve as the digital euro, that has been designed to be taxable. for this reason when transferring money to a friend instead of a business, that will have to go through a third party that sees the transacting parties and the amount
That’s a fair point. Maybe this “feature” is hard to implement with all countries agreeing on the taxing.
But their might be a limit to how much you can send without being taxable.
This is also a minor feature. As long as it’s possible within country borders, it would be fine 98% of the time.
Another reason to move to the digital euro is to circumvent the censorship on steam and various adult websites that credit card companies are imposing on us.
What is the use case of stable coins? Fast international money transfer? Or are there other I’m not aware of
katy ✨money laundering
UnderpantsWeevilHey, don’t forget legalized forgery.
“Fast” international money transfer without value fluctuations. AFAIK, it’s used to send money back overseas without fees and for online casinos.
treadfulMoney transfers, online payments for whatever, place to park your assets in volatile times in the market, integration into other on-chain investment systems, etc…
pop [he/him]For countries where the currency is unstable, stable currency is a way to protect one’s savings.
Where I’m from, historically you’d save in USD. But in the last few years, the market has imposed dumb obstacles, like the paper notes being completely unblemished (something that isn’t even a thing in the US, as far as I’m aware). That’s where stablecoins have been useful for the locals.
can they launch it into the sun?