How could the digital euro help the economy?

euro

CBDC (central bank digital currency), which includes the digital euro, has been a much discussed topic recently. Many central banks are currently exploring CBDCs and they are in various stages of development. Some are still exploring digital currencies, others are already in the pilot testing phase. Let’s take a closer look at the digital euro.

The digital euro

This digital currency would fall under the European Union and thus become another form of money to the euro fiat currency. It’s not yet clear exactly how it would work, but in general terms it’s likely that there would be a digital wallet and a payment card or app, and everything would work very similarly to card payments from your bank account. The difference is that the transactions would be faster and work the same way as if you were paying cash everywhere. However, the digital euro has many challenges ahead.

The challenges of a digital currency

One of the biggest challenges is privacy. Many people have expressed concerns about privacy and the creation of a digital euro will need to address this issue in depth. Another challenge will be the financial system itself. The reason why the digital euro should be created lies in the system itself, where it will operate. Private digital currencies without CBDC could affect central banks fulfilling their monetary policy mandate and lender of last resort role.

Tip: You probably already have a digital identity, but how will it evolve?

Conclusion

Thus, it is quite possible that in the future a truly digital central bank currency will be needed to maintain the financial system and financial stability. However, it should be added that there are already many alternatives that combine both a centralized and decentralized world. For example, PlatonCoin (PLTC) can offer you the convenience of the centralised world and the independence of the decentralised one. If you would like to learn more about PlatonCoin (PLTC), please visit our website.

Source: coinmarketcap.com

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