- Resistance to Digital Euro
- Opinions in the USA
- Global Perspective on CBDC
The European Central Bank's (ECB) plans to launch the digital euro are meeting resistance from many residents of Germany, Austria, the Netherlands, and Slovakia. People are concerned that a Central Bank Digital Currency (CBDC) could make them dependent on technology and threaten their privacy and savings.
Resistance to Digital Euro
These fears stem from the ECB's push for a CBDC which officials believe to be better than physical cash. Officials will vote on its implementation in late 2025. ECB officials assure that the digital euro will have advanced safety and privacy features, including encryption and hashing to ensure transaction confidentiality. Additionally, the bank promises that the currency will be easy to use and available to senior citizens and newcomers. In a 2023 statement, ECB President Christine Lagarde reiterated that the digital euro will co-exist with physical cash and transactions will be free of charge.
Opinions in the USA
It’s not just Europeans who are concerned about CBDCs. In the US, politicians, especially those on the right, have come out against a digital dollar. Republican candidate Donald Trump has vowed to fight CBDCs if he wins the 2024 presidential election, calling them “very dangerous” due to government overreach. Trump was previously not a fan of Bitcoin and cryptocurrencies in general. Quote: '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...''. Trump, who is facing a sentencing hearing for 34 state felonies on September 18, has since embraced the industry. He currently owns at least $1 million in digital currency.
Global Perspective on CBDC
The adoption of CBDCs is gaining support among central banks worldwide. China has already introduced a digital yuan, while the Bank of England is in the design phase of the digital pound. A final decision on the currency will be made in the next two to three years. Implementing a CBDC in the US 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 significantly increased.
Thus, despite resistance, the introduction of CBDCs is becoming more likely in both Europe and worldwide. Central banks continue to explore the safest and most effective ways to use digital currencies to improve financial systems.
