ECB vows digital euro will serve all Europeans in inclusivity push
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I don’t get it, money is already digital – why do we need a “digital euro”? It’s more like the government needs it so they can oppress the people.
Yeah and nah.
I am processing this myself. As I understand it, the money in your bank is a digital electronic record of the analogue money that your bank owes you. It is not digital money.
A CBDC will also be stored in a similar manner (except with the CB, not your bank), but it is not analogue money, it is digital money.
Your second sentence raises a question. The answer of which you have to be careful about the credentials and nature of who provides you with facts. Beware of conspiracy theorist nutters.
Current money is like a gift card from a shop. The store owes you say $50 of goods. Just as your bank owes you $50 in money if you ask them.
Digital currency is a claim on the CB. It is as good as cash. It is not a promise by the shop or your commercial bank.
Economists would say that bank deposits are not money; they are money‑like claims. Central bank money is money.
Control – your bank sees everything you do. Use your plastic card, and your bank knows. Blah. Nothing you can do about it.
The CB issues digital dosh with privacy layers. Just as with cash, it cannot see how you spend it. This could be much more private than the current system.