ECB PROGRESS REPORT PERTAINS TO RETAIL CBDC

Over 90% of the world is working on Central Bank Digital Currency (CBDC). CBDC will make it possible for the government to control how your spend and how much you can save. The prospect of this power has been special appealing to the European Central Banks and it is rushing to roll out its digital euro because it is an uninheritable money union implode. The digital euro progress report by the ECB and the author explained that the ECB has been actively exploring the digital euro since October 2021. This is shortly before the crypto market peaked in October, which is not a coincidence.

---

The ECB has explicitly stated that it sees stablecoins as competition. The author then reveals that the ECB has been in active discussion with the public and private sectors about the development of its digital euro. The author specifies the consultation with the private sector has been happening via the euro payment board which was founded in 2013. You should know that there are two types of CBDC the first one is Wholesale CBDC which will be used by selected individuals and institutions and Retail CBDC which be used by regular people. There will be two CBDC systems, one for the elite and one for everyone else.

---

Naturally, the ECB progress report pertains to retail CBDC. Not surprisingly, the authors note that the ECB will retain full control of digital euro issuance and settlement. What is surprising is that the author claims ECB will not be able to see how much end users hold with intermediaries. It is surprising because the ECB has repeatedly stated that privacy will not be possible. I think the mega banks and financial institutions are not fans of this. They need privacy to continue doing shady stuff behind the scenes. The author clearly states that it will be up to these intermediaries to handle all due diligence such as KYC and others. This means that this information will be accessible by these financial intermediaries but in practice, the ECB may have created a secret privacy loophole.

---

The absence of privacy in CBDC is extremely unpopular and not just the big money managers. It seems the EU solution to this problem is to allow intermediaries to hold their information but requires them to share them with the government via the government act and data act. The author reveals that a so-called digital euro scheme will be established in partnership with the private sector. They also reveal that the digital euro scheme will start to be drafted from January 2023 which is now.
Reference
Reference
Reference