The European Central Bank’s plans to launch the digital euro are facing resistance in Germany, Austria, Netherlands, and Slovakia. Concerns center around potential dependency on technology, privacy intrusions, and risks to savings.

These worries arise from the ECB’s pursuit of a Central Bank Digital Currency (CBDC), which officials argue could be superior to physical cash. A vote on its implementation is scheduled for late 2025.

ECB officials have stated that the digital euro will feature advanced safety measures, including encryption and hashing, ensuring transaction privacy. Additionally, the currency will be designed for ease of use, making it accessible to senior citizens and new arrivals.

In a 2023 statement, Christine Lagarde, the ECB president, emphasized that the digital euro will coexist with physical cash, and transactions will be free of charge.

It’s not just Europeans who are concerned about CBDCs. In the U.S., politicians, particularly on the right, have expressed opposition to a digital dollar. Republican candidate Donald Trump has vowed to fight CBDCs if he wins the 2024 presidential election, citing concerns over government overreach. Trump, who was once critical of Bitcoin and other cryptocurrencies, now owns at least $1 million in digital currency.

I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity…

— Donald J. Trump (@realDonaldTrump), July 12, 2019

Florida’s Republican Governor, Ron DeSantis, also opposes a digital dollar, CBDC, and other foreign-issued digital currencies.

Opponents argue that a CBDC could enable governments to follow China’s example and introduce a social score system, where behavior is monitored and rewarded or punished.

The implementation of a U.S. CBDC would require approval from the Senate, the House of Representatives, and the president. Over the past few years, the number of central banks researching or working on CBDCs has increased. China has already introduced a digital yuan, while the Bank of England is in the design phase of the digital pound, with a final decision expected in the next two to three years.

For more updates on cryptocurrencies, investing, and finance, stay tuned to Global Crypto News.

Post Views: 3