Digital Euro

CBDC
CBDCs (Central Bank Digital Currency): a technology looking for a solution? On the contrary, there are urgent needs looking for solutions which CBDCs may be able to provide. A sample:
  • Because of pandemic lockdowns, a large amount of financial aid was provided to businesses and individuals. Billions, even trillions. Was the money well utilised? Did it instead, say, pushed up the stock market? A rule-based, programmable digital currency may be able to ensure money is spent on investments, jobs etc, and not entirely on cigars.
  • Privacy is an often stated need for digital currencies but opt-in full transparency could also be a worthwhile goal. Some organisations would thrive on full transparency eg. charities, social enterprises and even some portions of governments. Example, if a government wishes to raise a mild tax to replant forests, tax payers may not mind shouldering the tax if they know all the money goes towards replanting forests, and saving furry (and non-furry) friends.

Tokenisation
  • On another note, a banker has suggested digital currencies could be expanded to a wider concept of tokens.
  • Thus, money, property, stocks etc are all tokenised and acquire the properties of immutable ledgers and programmability.
  • Interesting concept (and worth exploring further) but not sure if making everything highly liquid and under one paradigm or platform would be the best way to go.
  • In nature, water nurtures, but beware of turbulence, spills, rocky cascades, rip tides, floods, stagnant water, upstream damming, dam breaches, quick evaporation due to lack of tree cover etc.

Digital Euro
The month of May saw at least 3 major crypto conferences including Ethereal and Consensus. We didn't cover the two unlike previous years because their foci were more on coins, NFT and DeFi vs the more techie topics of previous editions. But Crypto Asset Conference 2021, happening May 31-June 2, breaks the mould. While the first two days see the usual topics, the third day is dedicated to CBDCs, specifically the Digital Euro, with topics like: