Your "wrong" attempts at "zwei Bier bitte" actually sounded quite natural. I actually liked the first two or three attempts more than the one you were happy with in the end because it is very German to just ignore the "r", even we don't want to go through the trouble of rolling an r after all.
You should *really* ask the IT nerds about the technical feasibility of offline transactions... Because then you will discover that there are some very big technical problems that might very well be unsolvable. The core problem is that offline digital money can literally be copy-pasted. Here's a realistic example: Imagine your phone with 25 digital offline euros getting stolen. Then a hacker can make 100 copies of that wallet. Then each wallet copy can be used to spend your money offline. In the end, when it goes online again, you will have spent 2500 euros of the 25 euros you had. Every good programmer should be able to verify that this issue exists. At least, i verified it with my colleagues and they all agreed this was an unsolvable money dupe. There may be a solution, but that would require quantum mechanics in every device, which is currently impossible.
@@snowmanscz1011 Yes it would, anything digital can be traced. Who says otherwise, the career liars who are forcing it upon us? Why would I ever trust them?
This has nothing to do with that. Even with digital euro you would need a third party software to make a transaction, like bizum or MBway. The only real benefit of this is the government can track were we use the money. This way they can guarantee that everything is taxed. Forget about selling your old phone and not paying taxes on the sale. Forget about buying a beer for 1 or 2€ (we all know little bars survive with this prices because they don't register everything). And if you end up without battery in your phone? Because the next step is allowing stores to not accept paper money. With no phone you will not be able to buy anything. The next 10 years in Europe look a little scary to me.
@@94leandro We already pay through card or phone even at bars, at least in Spain. I don't think it's such a big issue, and I don't believe paper money would ever be not allowed, especially in places like bars or supermarkets where going without your phone isn't as outlandish as it sounds.
I notice you both had essentially the same sponsor spot on the same video topic. Was Speakly the ones flying people out to Frankfurt for this or something?
I'm currently FORCED by my country to use mostly Electronic transactions, and I'm also "Paying the bank" to keep my money and use them as it likes, just for a bank account. The EU will try "not to be too successful", as the Banks rule EU and all the well paid salaries of these bureaucrats will terminate the day after such a decision will impact the HUGE margins of their employers.
Banks are no longer needed with digital wallets, we would just need payment providers to hold transactions until both wallets have connected to complete the transaction. Banks are lobbying to delay or prevent this so it seems it's our job to convince our representatives to ignore their lobbyists.
that’s what I’m thinking. Unless this new system comes with free bank accounts since storing money is a basic right imo I don’t see the benefit. Cause how can the gov force me to get my salary through a bank if I also have to pay for the bank account. These are basically subsidies for the bank.
Some of these limits are stupid. There shouldn't be a limit in how kuch money is in your digital wallets. Banks have other avenues where they make money. Loans, credit cards, savungs accounts, etc.
everyone suddenly putting all their money elsewhere would still hurt them immensely they wouldn't put a limit on it if it wasn't necessary for some very good reason im not saying I have a blind trust in these institutions or anything, just to be clear
@@rayaqinproblem is ... Not even 50% of the people would be able to withdraw their money or move them because the Banks have loaned your money to other people 😂
The thing with electronic cash (as well as bank cards) is the lack of privacy they provide. Banks, governments and payment processors can see everything you pay for.
@@mihailyonkov8988 It is your money, you don't need a special reason. CBDC allows the EU to regulate people's private lives, which they do instead of holding companies accountable. One such way would be to give everyone carbon credits instead of shutting down fossil fuel subsidies.
@@the11382 I see that the real reply is not showing up, so here you go an alternative one: I'm personally not doing anything against the law in a rules-based countries (EU), and have 0 issues with disclosing 100% of my purchases. Everybody who doesn't agree with me is hiding something - either that she buys pinapple pizza sober, that she is vegan, but eats meat 1 per month, or buys the pair of shoes she just discourgaed her best friend not to. These are all bad people and they deserve to be punished by law.
My biggest fear is that a CBDC makes negative interest rates possible. Lowering interest rates has always been a strategy of central banks, but a rate below zero would cause bank runs. Unless of course, they can't withdraw, because there is no cash. Then they are forced to keep on spending, or else you'd pay interest, whether you have a savings account or a debt. That's what economist Edin Mujagic claims, and he derived that conclusion from the ECB's own writings. Horrifying!
@@sportsfisher9677 I didn't know that. If I earn money by working for it, it should simply be mine. No central bank should be able to force me to spend it. Stimulating the economy sounds like a great idea, but these kinds of foul play makes us lose trust in central banks.
The system of incentives to spend/invest quickly is already here because of VAT and loans from IMF. So if you are a country or a company, you already do this. Now it seems they need private individuals to start spending too or else the economy slows too much. So consume more and quicker and stop complaining. The real problem is that this kind of incentive is exactly what happens in communist regimes. Spend and consume now because tomorow the state might take it from you.
@@uwoluwu You are right; there already are incentives to spend quickly. It is money I earned, so in theory, I should decide what to do with it. But no, the economy needs to be stimulated. I hate that! We agree: it definitely has similarities with communist regimes.
9:42 speaks to me. I already brainstormed months ago the idea of a fully decentralized currency, backed at parity to euro by a state, or similar. It's just too hard to control and restrict such a system, so why would any group spend effort.
Now what if the digital euro would only be something in the backend. Something that only the banks see, and we as user wouldn't know. With other words: the digital euro would be a standardized way of transferring money between banks.
The problem the digital euro solves is that the whole population is forced to keep their money in banks even with 0% or even negative interest while the banks make easy money because keeping cash in your house is unsafe. That's why we should fight to not limit the digital euros ability and be unlimited with 0% interest just like cash. Banks should give interest if they want peoples deposits.
The thing is that several European countries already have a good all purpose online payment service, but others don't. And they want to make one system that works for every EU citizen. So 1 system for 27 different countries, so a Dutch person can use the same system in Poland or Greece as they would use in The Netherlands. And this new system would be build, maintained, and managed in the EU. It's one thing to do something like this in 1 country but the EU is a union/cooperation of 27 different nations, some are world leading and some are more like developing countries. So implementing 1 system to be used union wide is way more intricate than implementing a system in 1 country.
I feel a little uncomfortable letting centralized institutions have so much power. They have a little too much already. That offline mode, given that it's open source or is otherwise kept in check by a neutral trusted party, does address that somewhat.
Governments always dominate money supply even when a coin was worth its face value it was ONLY minted by the Governments and they got to decide what money is allowed to be used by the public and for trade. This system dates back to the Roman Empire, Ancient Greece and Egypt, even further back Sumerian empire, the dawn of humans living together in a large state. So we can think that Governments are gaining too much power but they always had that power.
@@drscopeifyControlling individual people's physical coins and bills is a lot harder than changing using apps or other technology. There's a reason the government didn't plant a spy in every home back in the 20th century. Today it can tap basically every persons pocket even when they aren't at home using their smartphone.
I agree one bad move and we will all feel the effects, meanwhile now the banks don’t change much because they have to compete. One entitiy with the power to implement whatever they want would be horrible in the wrong hands. Even if it works for 100 years if just one year it lands on the lap of the wrong people they could turn it for the worse. If they implement it, it should be heavily restricted what they may and may not do to it.
CBDC (digital euro) is not just the digital version of the Euro but it is completely different. It will be programmable and controlled by Government/ECB. That means it is possible at any time to change the usage, it is possible to have specific restrictions tied on this CBDC, for example about where and what you can spend your money on or you can be forced to spend it until a specific date (you can`t save it) or your money can be taken to pay an extra tax or the access to it completely restricted or... But unfortunalely many people aren`t aware of that (yet) because it is not clearly communicated by those "in power"... maybe for a specific reason 😌😏
Exactly! It is the very opposite of freedom and sovereignty! It is a path to digital sl @ very. Government / Banks will have total control over your spending. They could limit the amount of transaction, limit it to specific geographic area (geofencing), to specific products, pair it with social credit or cancel it altogether. Digital euros also can be made expirable like supermarket vouchers. It is a thing we surely don't want. The reason why banks and governments are pushing CBDC is clear. Because rhey are broke, nobody can pay the huge debts they accumulated and they are looking for a new way how to extract wealth from the populus. Do not fall for that!
I guess the idea is to have similar product than cash (no interest) without having to carry coins or bills. Also could be cheaper to put some money on this card than having to pay fees for cash when you are in foreign euro countries . Arguably not something that is a must but quite handy
Great video on the digital Euro! Really appreciated the deep dive into its benefits and challenges. I think it's also crucial to discuss how this initiative could intersect with taxation and tax collection methods. As we move towards digital currencies, understanding their implications on taxes could really round out the conversation. How might this affect individual and business tax obligations, or even government revenue? Would love to see this explored in future content!
About time. Old banks haven't wanted to develop the banking system at all, like actually at all. They need to be pushed to actually start offering modern services. Digital Euro should allow at the very least that 3k so that people could for the most part just ignore crappy banks. They would actually need to develop their service offerings.
Only in some countries. In The Netherlands, the Baltics and Scandinavia, the banks are progressive with changes. I’m Dutch and we have iDeal (for all banks) for about 15 years and before that we had different system for each bank. We hardly use cash anymore for over 20 years. I only need cash when I go to Belgium and Germany, they aren’t that advanced in banking and a bit scared of their privacy (especially Germany) to fully use a digital banking payment system. And iDeal is very cheap to use, the cheapest in the EU. But that might change because iDeal is sold to EPI to form a Europeanwide digital payment system. This often ends in a more expensive system. With iDeal you pay a very small fee, consumers pay nothing and sellers pay a fee per transaction. Using iDeal, you pay €0,15 to €0,30 per transaction. Most other payment systems you pay €0,25 plus an additional percentage of about 1,5% or more per transaction. Especially the creditcard company’s payment system costs a lot more. And EPI wants to use that system, instead of a cheaper system like iDeal. That’s why they buy all the cheaper systems, so they can introduce a ‘new and better’ system, which is commercial slang for more expensive. Sadly there is no consumer protection when it involves EU initiatives of this kind.
In the beginning it could be a relatively low amount to make it possible to introduce and then when people learn their use and they support it more than the legacy system I believe the banks will have less power to oppose it, as they have less customers. Other ways might work but that's as I see it at the current time.
I really like both ideas of the Digital Euro and EPI, but it's success will depend very strongly by country. Some countries like the Netherlands, Belgium, Poland, Spain, etc. where cashless payments through local solutions is already very common will easily adapt a common solution. On the other hand, countries like Germany will have a hard time accepting it. Many business here still only take cash and will do so for the foreseeable future, but also most consumers don't even know our local payment solutions. (case in point, you showed the ec-card logo which got re-branded to girocard in 2007, not that I blame you or anything, even most Germans wouldn't have noticed) It's even worse for giropay, which is used to facilitate online payments and p2p payments. Almost nobody here ever heard of it and what it can do, even though it is supported by basically every bank here. Everyone here just uses PayPal for this.
People liking this digital euro really creep me out. The digital euro is no money, but rather a social credit system. At first it will all be nice and voluntary, until some crisis appears on the scene and there is need to intervene...@@somethingunscripted
@Siranoxz look into block chain and its implications. Look at how this technology is being used in China, then given Europe's covid response tell me that they would not use it to increase oppression.
@@somethingunscripted I'm not talking about blockchain technology. You are literally scare mongering a unrelated scenario and unfairly comparing the EU to China's social credit score system only because the EU wants a monetary system to be focused for European citizens instead of American 3rd party banking systems. You crazy conspiracy nut jobs have nothing to prove other then to scream in the online void how this would suppress your freedom because its centered on the government somehow, if you actually realize how much the government is funding and taking control of other infrastructure systems you take for granted then this Digital Euro thing is a very small addition to it.
3:03 3 statements that are most to worry about: *What is Basic Use? And who decide what it is, is it gov? What if it's not basic, do I have to pay for using my money? *Protection of privacy. From who? So only gov knows what transactions are made. What countries gov? We have many using euro. *Risk free. How is it risk free if only gov controls it? They can print as much as they want and if gov cyber attack happens on single point everyone is in big dodo.
One power outage of days or weeks and we all starve to dead. The food is there but you be unable to buy it ending up in riots. While everything could have been prevented by having cash money. Sometimes I wonder how comes humanity is so stupid?
yes like that wouldn't happen now even with the current euro, plus on the video he explains digital euro is not a replacement just a solution for the digital payments part.
@@Desperado070 I don't think you understood the video, because it said there'll be a limit of how much digital euro you can even keep in the smartwallet to prevent banks from collapsing. And it won't replace existing payment services or physical cash either. In fact they're making a law that says cash must be kept alive and it's illegal to phase it out. Sooo... those worries you have about it... I don't think make much sense... Unless you didn't understand the proposed system
It stands to reason that a digital euro would be essentially a block chain based, programmable fiat money system. Thus the intelligence services could build an AI-based system to monitor all transactions within this system in (close to) real time. Anonymity could be given initially but as a technology the ability to completely take it away it built in. Also as this form of money is by nature programmable, massive monetary oppression is technically possible, essentially allowing to enforce any policy by technology. From there it doesn't take much to sufficiently restrict usage of alternative stores of value (e.g. gold) and other digital mediums of exchange (e.g. Bitcoin with it's lightning network) and you end up in a very dystopian scenario. I don't think our current generation of politicians would aim to use it directly like that but looking at history, within ten years or so + a big crisis, dictatorships can totally come back even into the heart of Europe. If inflation should go for a second run, we might end up being in a scenario looking like the 1930s, which paved the way for a certain Austrian/German dictator... I'd rather stick with inefficient payment systems than create a very powerful oppression tool waiting to be used. And finally, independent from all that, in a world overloaded with dept, the FIAT needs to be removed and we need to go back to a more reliable store of value and politicians need to learn again to work within the limits of a budget...
Exactly. Modern currency doesn't even store value, but AT LEAST you can still have cash 100% in your own control. Digital currency means essentially handing over your financial independence to an institution, and putting yourself to a permanently disadvantaged position where you are 100% under the mercy of your government.
Cal you, please elaborate more on a sentence about the 10 EUR bill that goes: "its value is guaranteed by the ECB" - how EXACTLY is it guaranteed and in what extent? :) From what I see value of 10 EUR bill year ago and value today is far from being the same...
No, it is exactly the same: It is worth 10 EUR. Only if the material value of, say a coin, is higher than the nominal value, like, say 1 Eurocent coins, does this problem even occur. And I think it is not legal to recycle coins for their metal, though I'm not sure. Your questions regards the value of the whole currency, and that is not easy to say: its value is guaranteed by the willingness of people to believe that the currency will be able to be used to buy things of similar value. By making it the legal tender and forcing businesses to accept EUR in all eurozone countries, this belief is sustained in the absence of extremely dramatic events. A civilization collapse would nullify the value, and extremely high Inflation (think Germy in 1923), some value is guaranteed. Of course, like any commodity used to store wealth, the Euro (or dollar, or gold etc) will not always buy the same amount of stuff. The ECB tries to keep inflation close to 2% to incentivize spending the money but also not overly dis-incentivize saving money.
Yes please make a video about EPI. I think EPI is more interesting. It doesn't have the same goal,. It would replace the new digital payments of different countries: Paylib, Bizum, MBway, bancontact, Swish, vipps, etc. I don't see any drawbacks for consumers to have this : - We would get less and less dependant on MasterCard, Visa, Apple Pay, Google pay. All american companies that take a cut of our European payments - We would have a universal App across Europe instead of fragmented solutions - We could use it in different countries - A better experience than actual solutions (I'm sure it's great in some countries but Paylib in France is not that great) For business's, a smaller fee than Credit Card payments For Banks, the small fee in question would go their way (they have to have a reason to do this 😅)
I don't think there are any fees when using this technology. The cost to operate the service is payed by the tax payer collectively into the central EU bank budget.
what privacy ? you put your money in the centralised bank this is no private bank but the bank.of your government , goverment will see every transaction you make, and can tax it directly since goverment will have direct acces to your money
No you don't put it in the central bank. Didn't you listen to the video? Existing banks will hold the money, but they can't use it to lend out to others. And they can't charge you for holding it or transferring it
money will be issued by central bank and since it is digital it will always be traced by digital bank , you have no privacy snd sice this digital currency belongs to central bank they can program it according to their wushes and withold it at their wishes, your money will be their money ALL OF IT
@@serious9432 That makes no sense at all, because first of all, the amount of digital money you can have is limited. Secondly, nobody would ever want it if they did something like that. Plus there'd be riots in the street and the politicians would be forced to act. AND it would ruin the economy. Don't you get that the whole job of the central bank is to create a stable economy? That's been their aim until now and they're trying to become more independent from America now by doing a digital euro. Also, the whole withholding money thing, your regular bank can do that as well, but obviously they wouldn't because it's a massive PR disaster. Nobody would trust them ever again
The quality of your content seems to be going down a bit, with errors like some weird "Frame stabilizing" messages in the early moments of the video, or you misreading 100 000€ as 10k€ and not correcting it in any obvious way
As a private person I've been using my Belgian Bancontact/Maestro card for payments in several euro zone countries (Belgium, Netherlands, Luxembourg, Germany, France, Austria). It's just like using it for my regular shopping at home, no specific fee.I never carry much cash - except when going to Germany (many in this country still love cash).
I like cash as backup, but if anyhow possible I don't want to use it. Honestly this seems like great idea. Currently we use cards linked to digital payment methods and multiple different finance companies for simple transfer of money. Making process easier and cheaper would be great. Overall, we already use various third party digital money transfer services anyways.
No money is being transferred. It's all just accounting. It's not like the banks even hold your money in any capacity, rather than just borrowing it to someone who needs a loan, who can then use this infinite money to buy things and create a profit for the bank by paying interest.
@@mihailyonkov8988 Do you think the surveillance state has ever cared about the wealth of its citizens as it has continually eroded our freedom and privacy?
If banks and big corporations hate it, it is likely a good idea. But, overall, abandoning cash will screw: the poor, the homeless, the migrant workers, the elderly, people with special needs, children, the refugees and many other groups with no voting or economic power. Scandinavia is already phasing out cash and some invisible people get hit hard.
I've been trying to wrap my mind around this since I read about it a few months ago. Great work simplifying it! I wonder how this would affect European fintechs such as Klarna and other neobanks such as N26 and Revolut.
Curious to know what happens to an EU country's funds if they disagrees with the EU or the central bank controlling the CBDC. For example Ireland standing up for Palestine while the rest are complicit in the genocide. Do their fund get taken away or somehow nullified on the Blockchain?
As a student with masters degree in european economics, I assure you that digital euro has NO intentions to replace the current euro but complement it. It was a big discussion at a seminar dedicated about it and they clarified that not only it is not going to replace the euro but also does not pose a threat to banking institutions. It is being proposed in the first place, as an response to the newly established digital yuan. It can really make international payments far more secure and easy, so please do not make false statements.
The Digital Euro seems like the perfect current account for everyday use. No fees, no interest rates, immediate availability both online and offline and universal anywhere within the EU. I'm all for it!
@@belstar1128 If they make it work offline, it *will* be exploited. Basically, offline digital money can *literally* be copy-pasted. (not a joke) Source: i'm a programmer. (or ask any other good programmer, answer should be the same.)
As in the UK there is a need to separate retail and investment banking which poses the greatest risk to deposits. The retail side of the banks should only handle pay cheques and retail payments by customers leaving share broking, mortgages and car loans etc to others as it used to be prior to 1980's. If customers want to take the risk in supplying their funds to invest in these areas it should be their choice not the banks and should be based on an equitable share of the income not just the losses. This should be the role of the ECB digital Euro with no commercial or security organizations involved that can sell our information or use it to control us. This is what citizens of the EU should demand of their representatives.
All our dreams of having a lot of money come to be summarized on reaching a high imaginary digital number on bank account which height and limit is determined by a bank. This leads me to a conclusion that digital money can not be saved, which still does not un- slaves us of consumerizm. "It is interesting how ZERO raises the value of money."
If there was no fee for business owners, I can see quite some shops and businesses in Germany offering payment via digital euro (if they’re not obligated to anyway) and I myself would definitely use the digital euro!
I'm not sure how a digital euro would get around the issues that otherwise impede commercial digital currency solutions. By and large, there are two (legal) situations for paying in cash: where small transactions otherwise make card payments too expensive or in peer-to-peer transactions where digital solutions may not be ideal (for example, requiring use of a specific, common app connected to a bank account). While a digital euro would seem to overcome the issue of transaction cost for small payments, the cost is effectively offloaded onto the banking system or taxpayers; we haven't made anything more efficient, but rather changed who pays. Similarly, while a digital euro would seem to have a good chance of being a payment method individuals may be prepared to transact with, it doesn't seem to really offer any incremental benefit over something like Lydia.
Current solutions can't work online. They also require a third party like a bank and another money provider like Visa for all of their services. You also have that money guaranteed which is not the case for other services. If this works as advertised, it would actually be more practical and useful for the general public. As for cost, I can't say but I think having one centralized service might have a scaling effect that lowers costs. You also remove 3rd parties from the equation and their profit incentives. This may or may not be a good idea, hard to tell right now. I think that if cash is still in circulation, the privacy concern will be a non issue. In fact, if the system is managed well this should be better for privacy of general users.
This sounds like decoupling from America´s payment system and be more European sovereign based for Europeans. This by itself is not a bad idea, especially considering that Fee´s and other obligations from American companies are pushed towards EU countries. So if this digital Euro is the first step of decoupling from America´s Visa´s and Master Card then what´s next on the decoupling chopping block?. I´m from the Netherlands and i haven´t seen cash or held any cash money for many years now. And its only a small number of people using cash these days, and i understand that some European countries are way more forward with digitazation in monetary payment then other EU countries, but cash is definitely on its way out.
Biggest issue I see in Germany is that there are plenty of shops and restaurants (in Cologne where I live) that do not accept any form of card payments...literally cash only. Then there is a group of shops that refuse to accept Visa or Mastercard. Only possible payment is Maestro, which is useless so I refuse to have one. Once in a shop where card payments are possible, the cashier insisted that they are only possible from 10 euro upwards (all I wanted was a bottle of Coke Zero and some chewing gum). It's astonishing how Europe's largest economy can be so backwards.
About creditcards, it is the same in The Netherlands, we use debitcards not creditcards. I can’t pay at supermarkets and stores with a creditcard (In touristy areas this might differ). I can with a debitcard. That’s mainly because creditcard companies have an expensive fee per transaction for shops, often €0,25 plus an additional percentage of the purchase. While iDeal, the Dutch banking payment system, charges €0,15 to €0,30 per transaction without additional fee.
Nothing backwards about using cash. At least it can't be created out of thin air by every commercial bank, like digital money can. Cash is the last remnant of our financial independence. We should all use cash.
It was like that in the U.S. for many years 15+ years ago; if I wanted to buy just one slice of pizza and pay with a credit card, it wasn't possible because the pizzeria (or whatever type of business, as you please) management did not want to pay fees to the CC companies and demanded cash payment below $10 or so - therefore your only choice was to stock up on more items and/or buy more. This is no longer the case almost anywhere in the U.S.
Great initiative. As someone living in Germany, I can guarantee you this will never work here, unfortunately. There's still places in DE that use the freakin Deutsche Mark! Germans don't like change. Even if it comes hits them in the head. Not to mention the terrible state of monopoly and systemic fracture here when it comes to financial transactions (like so many other things). It's still not possible to pay with a debit card everywhere - even if you're in luck and the place accepts card payments! We've been singing about "digitalisierung" for like decades and still there's little change on ground. Hard to image anyone switching to a Digital Euro here Again, not bashing on the idea or the tech itself. That's great. But the end-user preferences - especially in central Europe, is probably going to be the biggest challenge to this
The digital euro (CBDC) is programmable money, for example, it can be programmed to be able to buy some things but not others. It can also expire after a certain amount of time. This gives government huge power to punish dissidents and other 'undesirables'. For example, your money might not work to pay for taxis, gas, airline tickets; or buy a home. A CBDC gives the gov the power to make your life hell.
Well let's ditch the buzzwords and look at this for what it actually is: This is an EU level state owned and controlled banking system which is supposed to be able to operate independently of the existing private banking system. They have to limit the % of money people are pulling out of the existing system to prevent that system from collapsing.
Interesting topic! I saw talks about this new euro for a while without understanding if it was a kind of institutional cryptocurrencu. Thanks for this and keep going! I dont think it will be a revolution but it could still be very handy
"privacy" this, "privacy" that. How about you actually explain how the "privacy" part of this works? And saying that it's on par with the current digital transaction is not exactly helping as the current system is the exact opposite of "private"
@@LordCoeCoe in practise yes. True but i atleast have control over how i use it. Maybe not it's value. I would still prefer monero or other decentralized currencys.
@@durschfalltv7505 You'd have control over how to use a digital currency as well. It doesn't change the fact that people can own money and do whatever with it. Since you can download an amount into a digital wallet on a device and pay things offline, you could even do illegal things with it.
So if I understand well this project will not be better for EU citizens and could be worse because it would cost us more and the reason behind that is the fact that multinational banks and corporations think that they would lose money ? What is the point of a new currency (digital one) if nobody is going to use it ? I'm 100% behind a more powerful and more integrated EU but I don't understand how this project will help...
I had a lot of misconseptions when I started the video, I thought it would be used to replace cash, but since it's not actually that, idk what to think about it we'll see I guess
What use does this offline wallet have if it's limited to 500 euros... Then it's more like an alternative to physical cash notes, which people don't tend to want to use anymore. Because of this, it's easier to further invest on instant wire transfers, and expand them to work with every bank in the EU. Then you also cut out the middle man.
WHAT ABOUTE IF THE ELICTRIC grid gets destroyed, what happens then. Cash dont need electrisity. and should be kept as paralell system if there is war for example.
The technology behind the blockchain isn't the problem, it's its speculative aspect. A crypto currency run by a state institution with guarantees behind its value would solve most problems. But I don't think this uses blockchain technology.
Based on these comments everyone seems to be clueless about the main point of this currency. This is not another ''digital money'' like you have at the bank right now and multiple third parties are involved in the payment process. This is effectively centralised PROGRAMABLE money which will destroy your sovereign and enforce multiple consumer behaviours based on what Brussels decides it's better or not. This will be a complete nightmare disguised as a ''good thing''. People will adopted it, get addicted due to the initial benefits and by the time they realise what it really is, it'll be too late.
I would absolutely use it, but I don't see how it would actually become a product because of EU lobbying. It's corrupt enough with other regulation so the bank industry would be extremely difficult to circumvent
This digital euro means the end of your privacy and can potentially create a totalitarian 'state'. Why would you want to let the EU decide which transactions you may or may not do? How much would we like this digital euro when the co2-budget gets coupled? Four years ago, people were named complotters for mentioning this digital euro.
Bah hahaha. As soon as CBDCs are forced onto people, the West becomes China. One needs to remember that the founder and director (chairman for life), Klaus Schwab, absolutely loves the Chinese Digital Renminbi (e-CNY) and their integrated social credit system. Just what we don't need.
"The European Union should encourage the establishment of a unified and autonomous banking system, following the example of China's Tieke, rather than pursuing the creation of the digital euro."
Nothing is autonomous you need servers, network and large manpower to run it. Software, offices, network security 24/7 it is not cheap. You need engineers to build and maintain it all.
offline paying with a device? So no bank server communicating? thats sounds like a great opportunity for black market transactions. Problem is that it still would make money appear in your account and thats a trace, so money is safer for such things.
The first country that lick started this technology was China. Due to the high effectiveness for population control with this type of new technology, China spear headed the first central bank digital currencies. So the US tool interest, now the EU.
Unlike China, the EU money is non-programmable. The dutch parliament already made a law on it, so the ECB must comply. For Europeans it will be a simple offline money version where no internet and stuff is needed. For the EU a power tool, it intends to spread money into the thrird world, every village in Africa ideally should use this currency. Not in a bad intent, it simply would allow the ECB to spend more money because inflation would be lower since so many foreign assets are denominated by the digital euro. Simply access for African tribes, no internet necessary they can use this stable money, compared to their currencies to buy stuff. No transaction cost either at these small amounts for the Africans. It will be offered through banks. Not directly the government. And again IT IS NOT PROGAMMABLE, the EU cannot take away your money and say u cannot spend it on example what they consider bad stuff. The money will work like digital cash, you can buy everything, the only time your accounts get frozen is if you do not pay your bills at the bank and overdraw, if you are using the wallet that the bank provides.
@@mihailyonkov8988 it's hard to feel bad about saying something that can be factually proven, by someone who makes such a stupid english mistake - which clearly is not a typo at that - and has the argumentative ability of a 4 year old child. current day chatbots can do better than you immeasurably. if you are too ignorant to see how corruption can not be fought properly with something like the Digital Euro and/or how it would/will result in civilian's privacy being abused i do feel bad for you. not because you are ignorant, everyone is born that way, more so because you cannot put in the effort to educate yourself despite how easy it is to do so and the severity of the stakes. making a mistake is only human. insisting on that mistake is foolish. expecting a different result from that mistake is just insanity.
Creeps me out that some many in the comments enthusiastically welcome this dystopian Trojan horse. Treason is all around. They don't mind you being cut off from your bank account for not behaving in line with the state ideology, as is common now in China. People like that can be bluntly considered traitors, they sell you out from their comfort.
Start learning new languages today with Speakly! speakly.app.link/intoeurope
Onlyfans?
Your "wrong" attempts at "zwei Bier bitte" actually sounded quite natural. I actually liked the first two or three attempts more than the one you were happy with in the end because it is very German to just ignore the "r", even we don't want to go through the trouble of rolling an r after all.
You should *really* ask the IT nerds about the technical feasibility of offline transactions...
Because then you will discover that there are some very big technical problems that might very well be unsolvable.
The core problem is that offline digital money can literally be copy-pasted.
Here's a realistic example:
Imagine your phone with 25 digital offline euros getting stolen.
Then a hacker can make 100 copies of that wallet.
Then each wallet copy can be used to spend your money offline.
In the end, when it goes online again, you will have spent 2500 euros of the 25 euros you had.
Every good programmer should be able to verify that this issue exists.
At least, i verified it with my colleagues and they all agreed this was an unsolvable money dupe.
There may be a solution, but that would require quantum mechanics in every device, which is currently impossible.
I think that the discount code is not working...
I don't know. I still like the privacy of cash.
This wouldn’t change anything for you then
Don't worry: You will be enslaved by this new system.
@@snowmanscz1011 Yes it would, anything digital can be traced. Who says otherwise, the career liars who are forcing it upon us? Why would I ever trust them?
Cash is king 👍
@@snowmanscz1011 For now... They are steering towards a cashless society.
In Spain we use bizum like its nothing. If we were given the chance to use a Digital Euro I’m sure nobody would have any qualms about it
In Portugal we use MB WAY. Every country has its own system - which is so inefficient.
Yap, and in Portugal mb way and they do not work with each other, very annoying during holidays D;
@@thailux6494but MBway is actually pretty good.
This has nothing to do with that. Even with digital euro you would need a third party software to make a transaction, like bizum or MBway. The only real benefit of this is the government can track were we use the money. This way they can guarantee that everything is taxed. Forget about selling your old phone and not paying taxes on the sale. Forget about buying a beer for 1 or 2€ (we all know little bars survive with this prices because they don't register everything). And if you end up without battery in your phone? Because the next step is allowing stores to not accept paper money. With no phone you will not be able to buy anything. The next 10 years in Europe look a little scary to me.
@@94leandro We already pay through card or phone even at bars, at least in Spain. I don't think it's such a big issue, and I don't believe paper money would ever be not allowed, especially in places like bars or supermarkets where going without your phone isn't as outlandish as it sounds.
Very nice video and thanks for the shoutout at the end Hugo!
I notice you both had essentially the same sponsor spot on the same video topic. Was Speakly the ones flying people out to Frankfurt for this or something?
@@Mason265no this was purely a coincidence.
I'm currently FORCED by my country to use mostly Electronic transactions, and I'm also "Paying the bank" to keep my money and use them as it likes, just for a bank account.
The EU will try "not to be too successful", as the Banks rule EU and all the well paid salaries of these bureaucrats will terminate the day after such a decision will impact the HUGE margins of their employers.
Banks are no longer needed with digital wallets, we would just need payment providers to hold transactions until both wallets have connected to complete the transaction. Banks are lobbying to delay or prevent this so it seems it's our job to convince our representatives to ignore their lobbyists.
that’s what I’m thinking. Unless this new system comes with free bank accounts since storing money is a basic right imo I don’t see the benefit. Cause how can the gov force me to get my salary through a bank if I also have to pay for the bank account. These are basically subsidies for the bank.
digital money is totaly control over the SLAVES......cash is king = freedom.
@@yumnax digital money is totaly control over the SLAVES......cash is king = freedom.
Living in the Nordics?
If the bank hates it and the FMI fears it, I'm loving it!😁
The government is worse at abusing people than any private sector.
wake up.
@@prinka2096 lol cause it wasn't because of bank that the whole 2008 finacial crisis happened...
@flxdrv5020 I can't see my comment so I don't know what I said before
@@prinka2096 "The government is worse at abusing people than any private sector."
Some of these limits are stupid. There shouldn't be a limit in how kuch money is in your digital wallets. Banks have other avenues where they make money. Loans, credit cards, savungs accounts, etc.
everyone suddenly putting all their money elsewhere would still hurt them immensely
they wouldn't put a limit on it if it wasn't necessary for some very good reason
im not saying I have a blind trust in these institutions or anything, just to be clear
@@rayaqinproblem is ... Not even 50% of the people would be able to withdraw their money or move them because the Banks have loaned your money to other people 😂
banks wanting to keep riping off their custommers
The thing with electronic cash (as well as bank cards) is the lack of privacy they provide. Banks, governments and payment processors can see everything you pay for.
So what do you intend to pay for that you don't want others to see?
@@mihailyonkov8988 It is your money, you don't need a special reason. CBDC allows the EU to regulate people's private lives, which they do instead of holding companies accountable. One such way would be to give everyone carbon credits instead of shutting down fossil fuel subsidies.
@@the11382 I see that the real reply is not showing up, so here you go an alternative one:
I'm personally not doing anything against the law in a rules-based countries (EU), and have 0 issues with disclosing 100% of my purchases.
Everybody who doesn't agree with me is hiding something - either that she buys pinapple pizza sober, that she is vegan, but eats meat 1 per month, or buys the pair of shoes she just discourgaed her best friend not to. These are all bad people and they deserve to be punished by law.
@@mihailyonkov8988 Are you saying this unironically?
That’s their intention
My biggest fear is that a CBDC makes negative interest rates possible. Lowering interest rates has always been a strategy of central banks, but a rate below zero would cause bank runs. Unless of course, they can't withdraw, because there is no cash. Then they are forced to keep on spending, or else you'd pay interest, whether you have a savings account or a debt. That's what economist Edin Mujagic claims, and he derived that conclusion from the ECB's own writings. Horrifying!
digital money is totaly control over the SLAVES......cash is king = freedom.
China puts a time limit on your money. Spend the 🪙 or lose it.
@@sportsfisher9677 I didn't know that. If I earn money by working for it, it should simply be mine. No central bank should be able to force me to spend it. Stimulating the economy sounds like a great idea, but these kinds of foul play makes us lose trust in central banks.
The system of incentives to spend/invest quickly is already here because of VAT and loans from IMF. So if you are a country or a company, you already do this. Now it seems they need private individuals to start spending too or else the economy slows too much. So consume more and quicker and stop complaining.
The real problem is that this kind of incentive is exactly what happens in communist regimes. Spend and consume now because tomorow the state might take it from you.
@@uwoluwu You are right; there already are incentives to spend quickly. It is money I earned, so in theory, I should decide what to do with it. But no, the economy needs to be stimulated. I hate that! We agree: it definitely has similarities with communist regimes.
9:42 speaks to me. I already brainstormed months ago the idea of a fully decentralized currency, backed at parity to euro by a state, or similar. It's just too hard to control and restrict such a system, so why would any group spend effort.
Now what if the digital euro would only be something in the backend. Something that only the banks see, and we as user wouldn't know. With other words: the digital euro would be a standardized way of transferring money between banks.
I was thinking the same, as it seems that main problem the current proposal solves is high visa/mastercard fees.
@@avmxkppp And the point is that I don't even pay visa fees in the first place.
The problem the digital euro solves is that the whole population is forced to keep their money in banks even with 0% or even negative interest while the banks make easy money because keeping cash in your house is unsafe. That's why we should fight to not limit the digital euros ability and be unlimited with 0% interest just like cash. Banks should give interest if they want peoples deposits.
@@machielvankats5567 True
Isn't that just SWIFT?
The EU just invented what Paytm has been doing since years in India
The thing is that several European countries already have a good all purpose online payment service, but others don't.
And they want to make one system that works for every EU citizen.
So 1 system for 27 different countries, so a Dutch person can use the same system in Poland or Greece as they would use in The Netherlands.
And this new system would be build, maintained, and managed in the EU.
It's one thing to do something like this in 1 country but the EU is a union/cooperation of 27 different nations, some are world leading and some are more like developing countries.
So implementing 1 system to be used union wide is way more intricate than implementing a system in 1 country.
My country already has a ´upi´ type app (mbway) and other countries aswell but it still doesn´t exist one that works for every eu country
Paytm is terrible. It requires an Indian phone number and is difficult to on board for foreigners. Totally locked down.
Nothing to me proud of, these are used for surveillance and control.
I feel a little uncomfortable letting centralized institutions have so much power. They have a little too much already.
That offline mode, given that it's open source or is otherwise kept in check by a neutral trusted party, does address that somewhat.
Governments always dominate money supply even when a coin was worth its face value it was ONLY minted by the Governments and they got to decide what money is allowed to be used by the public and for trade. This system dates back to the Roman Empire, Ancient Greece and Egypt, even further back Sumerian empire, the dawn of humans living together in a large state. So we can think that Governments are gaining too much power but they always had that power.
@@drscopeifyControlling individual people's physical coins and bills is a lot harder than changing using apps or other technology.
There's a reason the government didn't plant a spy in every home back in the 20th century. Today it can tap basically every persons pocket even when they aren't at home using their smartphone.
I agree one bad move and we will all feel the effects, meanwhile now the banks don’t change much because they have to compete. One entitiy with the power to implement whatever they want would be horrible in the wrong hands. Even if it works for 100 years if just one year it lands on the lap of the wrong people they could turn it for the worse.
If they implement it, it should be heavily restricted what they may and may not do to it.
So where, in whose hands, would you rather leave these kind of decisions and policy making?
@@huskytailThe hands of the people.
In Canada as well, the central bank is looking into the viability of CBDCs. Performance in Europe could assist in a decision to integrate.
CBDC (digital euro) is not just the digital version of the Euro but it is completely different. It will be programmable and controlled by Government/ECB.
That means it is possible at any time to change the usage, it is possible to have specific restrictions tied on this CBDC, for example about where and what you can spend your money on or you can be forced to spend it until a specific date (you can`t save it) or your money can be taken to pay an extra tax or the access to it completely restricted or...
But unfortunalely many people aren`t aware of that (yet) because it is not clearly communicated by those "in power"... maybe for a specific reason 😌😏
Exactly! It is the very opposite of freedom and sovereignty! It is a path to digital sl @ very.
Government / Banks will have total control over your spending. They could limit the amount of transaction, limit it to specific geographic area (geofencing), to specific products, pair it with social credit or cancel it altogether. Digital euros also can be made expirable like supermarket vouchers.
It is a thing we surely don't want. The reason why banks and governments are pushing CBDC is clear. Because rhey are broke, nobody can pay the huge debts they accumulated and they are looking for a new way how to extract wealth from the populus.
Do not fall for that!
I still don't get the point.. It will have a limit of 3.000 and no interest.. Why would you switch?
I guess the idea is to have similar product than cash (no interest) without having to carry coins or bills. Also could be cheaper to put some money on this card than having to pay fees for cash when you are in foreign euro countries .
Arguably not something that is a must but quite handy
its communism if you have more than 3.000 Euro you are bougwazie or something i can't spell
@@belstar1128 digital money is totaly control over the SLAVES......cash is king = freedom.
I almost never have more than 3 000 euros on the account I use for everyday usage
Great video on the digital Euro! Really appreciated the deep dive into its benefits and challenges. I think it's also crucial to discuss how this initiative could intersect with taxation and tax collection methods. As we move towards digital currencies, understanding their implications on taxes could really round out the conversation. How might this affect individual and business tax obligations, or even government revenue? Would love to see this explored in future content!
About time. Old banks haven't wanted to develop the banking system at all, like actually at all. They need to be pushed to actually start offering modern services. Digital Euro should allow at the very least that 3k so that people could for the most part just ignore crappy banks. They would actually need to develop their service offerings.
digital money is totaly control over the SLAVES......cash is king = freedom.
Only in some countries. In The Netherlands, the Baltics and Scandinavia, the banks are progressive with changes. I’m Dutch and we have iDeal (for all banks) for about 15 years and before that we had different system for each bank. We hardly use cash anymore for over 20 years. I only need cash when I go to Belgium and Germany, they aren’t that advanced in banking and a bit scared of their privacy (especially Germany) to fully use a digital banking payment system. And iDeal is very cheap to use, the cheapest in the EU. But that might change because iDeal is sold to EPI to form a Europeanwide digital payment system. This often ends in a more expensive system. With iDeal you pay a very small fee, consumers pay nothing and sellers pay a fee per transaction. Using iDeal, you pay €0,15 to €0,30 per transaction. Most other payment systems you pay €0,25 plus an additional percentage of about 1,5% or more per transaction. Especially the creditcard company’s payment system costs a lot more. And EPI wants to use that system, instead of a cheaper system like iDeal. That’s why they buy all the cheaper systems, so they can introduce a ‘new and better’ system, which is commercial slang for more expensive. Sadly there is no consumer protection when it involves EU initiatives of this kind.
In the beginning it could be a relatively low amount to make it possible to introduce and then when people learn their use and they support it more than the legacy system I believe the banks will have less power to oppose it, as they have less customers. Other ways might work but that's as I see it at the current time.
@@henrik2117 reasonable!
We had a politucian in Greece which he promoted a similar system in a national level and then in EU level but was later mocked by bank lobbies
poios???
I really like both ideas of the Digital Euro and EPI, but it's success will depend very strongly by country. Some countries like the Netherlands, Belgium, Poland, Spain, etc. where cashless payments through local solutions is already very common will easily adapt a common solution. On the other hand, countries like Germany will have a hard time accepting it. Many business here still only take cash and will do so for the foreseeable future, but also most consumers don't even know our local payment solutions. (case in point, you showed the ec-card logo which got re-branded to girocard in 2007, not that I blame you or anything, even most Germans wouldn't have noticed) It's even worse for giropay, which is used to facilitate online payments and p2p payments. Almost nobody here ever heard of it and what it can do, even though it is supported by basically every bank here. Everyone here just uses PayPal for this.
You will own nothing and will be happy
People liking this digital euro really creep me out. The digital euro is no money, but rather a social credit system. At first it will all be nice and voluntary, until some crisis appears on the scene and there is need to intervene...@@somethingunscripted
@@somethingunscripted You dont own cash either buddy.
@Siranoxz look into block chain and its implications. Look at how this technology is being used in China, then given Europe's covid response tell me that they would not use it to increase oppression.
@@somethingunscripted I'm not talking about blockchain technology.
You are literally scare mongering a unrelated scenario and unfairly comparing the EU to China's social credit score system only because the EU wants a monetary system to be focused for European citizens instead of American 3rd party banking systems.
You crazy conspiracy nut jobs have nothing to prove other then to scream in the online void how this would suppress your freedom because its centered on the government somehow, if you actually realize how much the government is funding and taking control of other infrastructure systems you take for granted then this Digital Euro thing is a very small addition to it.
3:03 3 statements that are most to worry about:
*What is Basic Use? And who decide what it is, is it gov? What if it's not basic, do I have to pay for using my money?
*Protection of privacy. From who? So only gov knows what transactions are made. What countries gov? We have many using euro.
*Risk free. How is it risk free if only gov controls it? They can print as much as they want and if gov cyber attack happens on single point everyone is in big dodo.
One power outage of days or weeks and we all starve to dead.
The food is there but you be unable to buy it ending up in riots.
While everything could have been prevented by having cash money.
Sometimes I wonder how comes humanity is so stupid?
Cyber attack will crash the system without doubt,they want total chaos
yes like that wouldn't happen now even with the current euro, plus on the video he explains digital euro is not a replacement just a solution for the digital payments part.
The food will rot before you'll have the chance to buy it
@@ducasx3094 Only 10% of food needs to be in a cooler or a freezer, bs
@@Desperado070 I don't think you understood the video, because it said there'll be a limit of how much digital euro you can even keep in the smartwallet to prevent banks from collapsing. And it won't replace existing payment services or physical cash either.
In fact they're making a law that says cash must be kept alive and it's illegal to phase it out. Sooo... those worries you have about it... I don't think make much sense... Unless you didn't understand the proposed system
It stands to reason that a digital euro would be essentially a block chain based, programmable fiat money system. Thus the intelligence services could build an AI-based system to monitor all transactions within this system in (close to) real time. Anonymity could be given initially but as a technology the ability to completely take it away it built in. Also as this form of money is by nature programmable, massive monetary oppression is technically possible, essentially allowing to enforce any policy by technology. From there it doesn't take much to sufficiently restrict usage of alternative stores of value (e.g. gold) and other digital mediums of exchange (e.g. Bitcoin with it's lightning network) and you end up in a very dystopian scenario. I don't think our current generation of politicians would aim to use it directly like that but looking at history, within ten years or so + a big crisis, dictatorships can totally come back even into the heart of Europe. If inflation should go for a second run, we might end up being in a scenario looking like the 1930s, which paved the way for a certain Austrian/German dictator... I'd rather stick with inefficient payment systems than create a very powerful oppression tool waiting to be used. And finally, independent from all that, in a world overloaded with dept, the FIAT needs to be removed and we need to go back to a more reliable store of value and politicians need to learn again to work within the limits of a budget...
yep, you get a total SLAVE............
so true
Exactly. Modern currency doesn't even store value, but AT LEAST you can still have cash 100% in your own control. Digital currency means essentially handing over your financial independence to an institution, and putting yourself to a permanently disadvantaged position where you are 100% under the mercy of your government.
Cal you, please elaborate more on a sentence about the 10 EUR bill that goes: "its value is guaranteed by the ECB" - how EXACTLY is it guaranteed and in what extent? :) From what I see value of 10 EUR bill year ago and value today is far from being the same...
No, it is exactly the same: It is worth 10 EUR. Only if the material value of, say a coin, is higher than the nominal value, like, say 1 Eurocent coins, does this problem even occur. And I think it is not legal to recycle coins for their metal, though I'm not sure. Your questions regards the value of the whole currency, and that is not easy to say: its value is guaranteed by the willingness of people to believe that the currency will be able to be used to buy things of similar value. By making it the legal tender and forcing businesses to accept EUR in all eurozone countries, this belief is sustained in the absence of extremely dramatic events. A civilization collapse would nullify the value, and extremely high Inflation (think Germy in 1923), some value is guaranteed. Of course, like any commodity used to store wealth, the Euro (or dollar, or gold etc) will not always buy the same amount of stuff. The ECB tries to keep inflation close to 2% to incentivize spending the money but also not overly dis-incentivize saving money.
Commenting for engagement. This is the kind of content I am subscribed for.
Love to hear it! :)
Yes please make a video about EPI.
I think EPI is more interesting. It doesn't have the same goal,.
It would replace the new digital payments of different countries: Paylib, Bizum, MBway, bancontact, Swish, vipps, etc.
I don't see any drawbacks for consumers to have this :
- We would get less and less dependant on MasterCard, Visa, Apple Pay, Google pay. All american companies that take a cut of our European payments
- We would have a universal App across Europe instead of fragmented solutions
- We could use it in different countries
- A better experience than actual solutions (I'm sure it's great in some countries but Paylib in France is not that great)
For business's, a smaller fee than Credit Card payments
For Banks, the small fee in question would go their way (they have to have a reason to do this 😅)
I don't think there are any fees when using this technology. The cost to operate the service is payed by the tax payer collectively into the central EU bank budget.
what privacy ? you put your money in the centralised bank this is no private bank but the bank.of your government , goverment will see every transaction you make, and can tax it directly since goverment will have direct acces to your money
No you don't put it in the central bank. Didn't you listen to the video? Existing banks will hold the money, but they can't use it to lend out to others. And they can't charge you for holding it or transferring it
money will be issued by central bank and since it is digital it will always be traced by digital bank , you have no privacy snd sice this digital currency belongs to central bank they can program it according to their wushes and withold it at their wishes, your money will be their money ALL OF IT
@@serious9432 That makes no sense at all, because first of all, the amount of digital money you can have is limited. Secondly, nobody would ever want it if they did something like that. Plus there'd be riots in the street and the politicians would be forced to act. AND it would ruin the economy.
Don't you get that the whole job of the central bank is to create a stable economy? That's been their aim until now and they're trying to become more independent from America now by doing a digital euro. Also, the whole withholding money thing, your regular bank can do that as well, but obviously they wouldn't because it's a massive PR disaster. Nobody would trust them ever again
The quality of your content seems to be going down a bit, with errors like some weird "Frame stabilizing" messages in the early moments of the video, or you misreading 100 000€ as 10k€ and not correcting it in any obvious way
Just a suggestion in a question, would rail have been a viable alternative to flying?
No, it would have been a more than 24 hour train trip :/
As a private person I've been using my Belgian Bancontact/Maestro card for payments in several euro zone countries (Belgium, Netherlands, Luxembourg, Germany, France, Austria). It's just like using it for my regular shopping at home, no specific fee.I never carry much cash - except when going to Germany (many in this country still love cash).
Correction: Germans do not love cash. They just love to stick to everything which is from the previous century.
I hope this comes to fruition because i generally hate bereaucracy. Sadly the older generation in my country are stuck behind.
I like cash as backup, but if anyhow possible I don't want to use it. Honestly this seems like great idea. Currently we use cards linked to digital payment methods and multiple different finance companies for simple transfer of money. Making process easier and cheaper would be great.
Overall, we already use various third party digital money transfer services anyways.
No money is being transferred. It's all just accounting. It's not like the banks even hold your money in any capacity, rather than just borrowing it to someone who needs a loan, who can then use this infinite money to buy things and create a profit for the bank by paying interest.
Give up your anonymity, give up your freedom. Say no to economic surveillance.
Do you think you have the amount of money that would justify exactly your surveilance?
@@mihailyonkov8988 Do you think the surveillance state has ever cared about the wealth of its citizens as it has continually eroded our freedom and privacy?
@@mihailyonkov8988every single taxable person has enough money to be worth surveilance
@@mihailyonkov8988tracking donw any citizen down to the last penny? That's the dream of any totalitarian state.
If they can bar anyone from buying or selling remotely it will be a problem. If that's not part of it at first it probably will be eventually.
Yeah, and that is the proposal instead of holding companies accountable. Corruption eh?
If banks and big corporations hate it, it is likely a good idea.
But, overall, abandoning cash will screw: the poor, the homeless, the migrant workers, the elderly, people with special needs, children, the refugees and many other groups with no voting or economic power. Scandinavia is already phasing out cash and some invisible people get hit hard.
Curious...which governmental agcy do you work for? Nothing mentioned about programmable which would be TOTAL control by the government 😅
I've been trying to wrap my mind around this since I read about it a few months ago. Great work simplifying it! I wonder how this would affect European fintechs such as Klarna and other neobanks such as N26 and Revolut.
Curious to know what happens to an EU country's funds if they disagrees with the EU or the central bank controlling the CBDC. For example Ireland standing up for Palestine while the rest are complicit in the genocide. Do their fund get taken away or somehow nullified on the Blockchain?
digital money is totaly control over the SLAVES......cash is king = freedom.
Easely.
As a student with masters degree in european economics, I assure you that digital euro has NO intentions to replace the current euro but complement it. It was a big discussion at a seminar dedicated about it and they clarified that not only it is not going to replace the euro but also does not pose a threat to banking institutions.
It is being proposed in the first place, as an response to the newly established digital yuan. It can really make international payments far more secure and easy, so please do not make false statements.
The Digital Euro seems like the perfect current account for everyday use. No fees, no interest rates, immediate availability both online and offline and universal anywhere within the EU. I'm all for it!
until they cancel your account
you think it will work offline ? or even with slow internet or a phone that is over 5 years old ?
no fees? forget it. and its ONLY valid for 3 months, after that it disapear from your account...........
@@belstar1128 If they make it work offline, it *will* be exploited.
Basically, offline digital money can *literally* be copy-pasted. (not a joke)
Source: i'm a programmer. (or ask any other good programmer, answer should be the same.)
As in the UK there is a need to separate retail and investment banking which poses the greatest risk to deposits. The retail side of the banks should only handle pay cheques and retail payments by customers leaving share broking, mortgages and car loans etc to others as it used to be prior to 1980's. If customers want to take the risk in supplying their funds to invest in these areas it should be their choice not the banks and should be based on an equitable share of the income not just the losses. This should be the role of the ECB digital Euro with no commercial or security organizations involved that can sell our information or use it to control us. This is what citizens of the EU should demand of their representatives.
In what universe would cash payments not decrease if you arent allowed to hold 'too much' or to withdrawl 'too much'
All our dreams of having a lot of money come to be summarized on reaching a high imaginary digital number on bank account which height and limit is determined by a bank. This leads me to a conclusion that digital money can not be saved, which still does not un- slaves us of consumerizm. "It is interesting how ZERO raises the value of money."
With this they can control all your money including turning it off, not for me thank you.
If there was no fee for business owners, I can see quite some shops and businesses in Germany offering payment via digital euro (if they’re not obligated to anyway) and I myself would definitely use the digital euro!
having unified digital pan European currency seems useful
I'm not sure how a digital euro would get around the issues that otherwise impede commercial digital currency solutions. By and large, there are two (legal) situations for paying in cash: where small transactions otherwise make card payments too expensive or in peer-to-peer transactions where digital solutions may not be ideal (for example, requiring use of a specific, common app connected to a bank account). While a digital euro would seem to overcome the issue of transaction cost for small payments, the cost is effectively offloaded onto the banking system or taxpayers; we haven't made anything more efficient, but rather changed who pays. Similarly, while a digital euro would seem to have a good chance of being a payment method individuals may be prepared to transact with, it doesn't seem to really offer any incremental benefit over something like Lydia.
Current solutions can't work online. They also require a third party like a bank and another money provider like Visa for all of their services. You also have that money guaranteed which is not the case for other services. If this works as advertised, it would actually be more practical and useful for the general public.
As for cost, I can't say but I think having one centralized service might have a scaling effect that lowers costs. You also remove 3rd parties from the equation and their profit incentives. This may or may not be a good idea, hard to tell right now.
I think that if cash is still in circulation, the privacy concern will be a non issue. In fact, if the system is managed well this should be better for privacy of general users.
This sounds like decoupling from America´s payment system and be more European sovereign based for Europeans.
This by itself is not a bad idea, especially considering that Fee´s and other obligations from American companies are pushed towards EU countries.
So if this digital Euro is the first step of decoupling from America´s Visa´s and Master Card then what´s next on the decoupling chopping block?.
I´m from the Netherlands and i haven´t seen cash or held any cash money for many years now.
And its only a small number of people using cash these days, and i understand that some European countries are way more forward with digitazation in monetary payment then other EU countries, but cash is definitely on its way out.
Schwab rubbing his hands together like an evil fly plotting in silence...............................................
So you now travel for your channel. Good for you !
Biggest issue I see in Germany is that there are plenty of shops and restaurants (in Cologne where I live) that do not accept any form of card payments...literally cash only. Then there is a group of shops that refuse to accept Visa or Mastercard. Only possible payment is Maestro, which is useless so I refuse to have one. Once in a shop where card payments are possible, the cashier insisted that they are only possible from 10 euro upwards (all I wanted was a bottle of Coke Zero and some chewing gum). It's astonishing how Europe's largest economy can be so backwards.
About creditcards, it is the same in The Netherlands, we use debitcards not creditcards. I can’t pay at supermarkets and stores with a creditcard (In touristy areas this might differ). I can with a debitcard. That’s mainly because creditcard companies have an expensive fee per transaction for shops, often €0,25 plus an additional percentage of the purchase. While iDeal, the Dutch banking payment system, charges €0,15 to €0,30 per transaction without additional fee.
@@RealConstructor I have Visa Debit cards.....not a problem using it anywhere outside of Germany, but here they refuse to accept it and demand Maestro
Nothing backwards about using cash. At least it can't be created out of thin air by every commercial bank, like digital money can. Cash is the last remnant of our financial independence. We should all use cash.
@@antaryjczyk That’s probably because of the transaction costs for using Visa.
It was like that in the U.S. for many years 15+ years ago; if I wanted to buy just one slice of pizza and pay with a credit card, it wasn't possible because the pizzeria (or whatever type of business, as you please) management did not want to pay fees to the CC companies and demanded cash payment below $10 or so - therefore your only choice was to stock up on more items and/or buy more. This is no longer the case almost anywhere in the U.S.
Great initiative. As someone living in Germany, I can guarantee you this will never work here, unfortunately. There's still places in DE that use the freakin Deutsche Mark! Germans don't like change. Even if it comes hits them in the head. Not to mention the terrible state of monopoly and systemic fracture here when it comes to financial transactions (like so many other things). It's still not possible to pay with a debit card everywhere - even if you're in luck and the place accepts card payments! We've been singing about "digitalisierung" for like decades and still there's little change on ground. Hard to image anyone switching to a Digital Euro here
Again, not bashing on the idea or the tech itself. That's great. But the end-user preferences - especially in central Europe, is probably going to be the biggest challenge to this
Who the heck uses Mark? xD
No biggie. Just use cash instead.
Every single purchase should be monitored, filed and taxed, not a single unregulated transaction and agreement
Here in Russia we have very similar program with the same goal. All banks are freaking out.
This Is the most monsteous dictarorshio project ever seen on earth!
The digital euro (CBDC) is programmable money, for example, it can be programmed to be able to buy some things but not others. It can also expire after a certain amount of time. This gives government huge power to punish dissidents and other 'undesirables'. For example, your money might not work to pay for taxis, gas, airline tickets; or buy a home. A CBDC gives the gov the power to make your life hell.
Why do they want to impose limit on how much digital euros people can hold?
Well let's ditch the buzzwords and look at this for what it actually is: This is an EU level state owned and controlled banking system which is supposed to be able to operate independently of the existing private banking system.
They have to limit the % of money people are pulling out of the existing system to prevent that system from collapsing.
Interesting topic! I saw talks about this new euro for a while without understanding if it was a kind of institutional cryptocurrencu. Thanks for this and keep going!
I dont think it will be a revolution but it could still be very handy
Sounds okay to replace debit cards and stuff like iDeal, but I'd want to still have the option of paper Euros.
"privacy" this, "privacy" that. How about you actually explain how the "privacy" part of this works? And saying that it's on par with the current digital transaction is not exactly helping as the current system is the exact opposite of "private"
Cash is gold. Fuck centralized currency that can be seized and survailed.
Cash is centralized...
And it can be survailed as well.
@@LordCoeCoe in practise yes. True but i atleast have control over how i use it. Maybe not it's value. I would still prefer monero or other decentralized currencys.
If anyone knows this guy in real life. I know where you can find a lot of easy money. His mattress 😂
@@durschfalltv7505 You'd have control over how to use a digital currency as well. It doesn't change the fact that people can own money and do whatever with it. Since you can download an amount into a digital wallet on a device and pay things offline, you could even do illegal things with it.
So if I understand well this project will not be better for EU citizens and could be worse because it would cost us more and the reason behind that is the fact that multinational banks and corporations think that they would lose money ? What is the point of a new currency (digital one) if nobody is going to use it ?
I'm 100% behind a more powerful and more integrated EU but I don't understand how this project will help...
Cash is king
Johny Cash is king.
I dont think paper money will disappear for at least 20-25 years.
In Denmark they have said they will make new style paper money by 2028
Highly depends on the usage of other digital/crypto currencies and the easy of conversion to the digital Euro
I had a lot of misconseptions when I started the video, I thought it would be used to replace cash, but since it's not actually that, idk what to think about it we'll see I guess
I'm from Spain, and I've not touched physical currency in months
i'm from The Netherlands and i've used cash ones this year.
@@ChristiaanHW I'm from Bulgaria and haven't seen cash in 2 years. Food as well. I have no job. I'm poor. Please send money.
What use does this offline wallet have if it's limited to 500 euros... Then it's more like an alternative to physical cash notes, which people don't tend to want to use anymore. Because of this, it's easier to further invest on instant wire transfers, and expand them to work with every bank in the EU. Then you also cut out the middle man.
I think it sounds great!
"The promise of cash" is funny, considering cash is also a promise of value. Used to be a promise of gold.
Oh the US is trying to do this too. I'm between continents because of family so this interests me.
Deposits are garantheed until 100 000 € , not until 10% of that, meaning 10 000 € as you said
10:14 €10.000 or €100.000?
WHAT ABOUTE IF THE ELICTRIC grid gets destroyed, what happens then. Cash dont need electrisity. and should be kept as paralell system if there is war for example.
then will be total anarchy coz seller what will do with paper? :D
As long as its not based on crypto, I'm for it
Blocked
What do you mean "not based on crypto". It IS a cryptographic currency
there is no other way to do it????
@@3cosmo The Digital Euro is neither a cryptocurrency or a blockchain lol. Read more then headlines when it comes to crypto please
The technology behind the blockchain isn't the problem, it's its speculative aspect. A crypto currency run by a state institution with guarantees behind its value would solve most problems. But I don't think this uses blockchain technology.
Based on these comments everyone seems to be clueless about the main point of this currency. This is not another ''digital money'' like you have at the bank right now and multiple third parties are involved in the payment process. This is effectively centralised PROGRAMABLE money which will destroy your sovereign and enforce multiple consumer behaviours based on what Brussels decides it's better or not. This will be a complete nightmare disguised as a ''good thing''. People will adopted it, get addicted due to the initial benefits and by the time they realise what it really is, it'll be too late.
5:35 yeah right😂😂 with everywhere camera's on the street these days they wont check you moneytrace
The main problem with Digital euro is that it doesn’t include the banking ecosystem.
Yes!
I would absolutely use it, but I don't see how it would actually become a product because of EU lobbying. It's corrupt enough with other regulation so the bank industry would be extremely difficult to circumvent
This digital euro means the end of your privacy and can potentially create a totalitarian 'state'. Why would you want to let the EU decide which transactions you may or may not do? How much would we like this digital euro when the co2-budget gets coupled? Four years ago, people were named complotters for mentioning this digital euro.
Bah hahaha. As soon as CBDCs are forced onto people, the West becomes China. One needs to remember that the founder and director (chairman for life), Klaus Schwab, absolutely loves the Chinese Digital Renminbi (e-CNY) and their integrated social credit system. Just what we don't need.
digital money is totaly control over the SLAVES......cash is king = freedom.
"The European Union should encourage the establishment of a unified and autonomous banking system, following the example of China's Tieke, rather than pursuing the creation of the digital euro."
true
big true
Ask that to the member states, preatty sure that most of them would hate to lose the control of their banks (or what little control they still have).
Chinese banks are state run and they function thanks to Union Pay and trillions of USD
Nothing is autonomous you need servers, network and large manpower to run it. Software, offices, network security 24/7 it is not cheap. You need engineers to build and maintain it all.
After the trucker protest in Canada, and frizzing there bank accounts, I'm werry sceptical/fearful of digital money😕
I'm positive for the digital euro!
if it lowers SME transaction fees then i’ll be happy to switch. Also it makes me wonder how would using an ATM work
100000 euros not 10 000 euros but great video globaly
I would at least try it.
offline paying with a device? So no bank server communicating? thats sounds like a great opportunity for black market transactions. Problem is that it still would make money appear in your account and thats a trace, so money is safer for such things.
digital money is totaly control over the SLAVES......cash is king = freedom.
It's so lovely to see your production quality grow. Keep on it man, you have a great channel!
Do not comply, it is all about power and control.
ah, the tell tale uncaught sign of warp stabilizer.
Yikes…. This is terrifying
Why?
The first country that lick started this technology was China. Due to the high effectiveness for population control with this type of new technology, China spear headed the first central bank digital currencies.
So the US tool interest, now the EU.
Unlike China, the EU money is non-programmable. The dutch parliament already made a law on it, so the ECB must comply. For Europeans it will be a simple offline money version where no internet and stuff is needed. For the EU a power tool, it intends to spread money into the thrird world, every village in Africa ideally should use this currency. Not in a bad intent, it simply would allow the ECB to spend more money because inflation would be lower since so many foreign assets are denominated by the digital euro. Simply access for African tribes, no internet necessary they can use this stable money, compared to their currencies to buy stuff. No transaction cost either at these small amounts for the Africans.
It will be offered through banks. Not directly the government. And again IT IS NOT PROGAMMABLE, the EU cannot take away your money and say u cannot spend it on example what they consider bad stuff. The money will work like digital cash, you can buy everything, the only time your accounts get frozen is if you do not pay your bills at the bank and overdraw, if you are using the wallet that the bank provides.
This European Digital Currency is a "spin off" of the European Payments Initiative (EPI), a european paiement network.
And how do I maintain my freedom and anonymously?
There is sense to this - also corruption could be controlled better too :)
no it would not. only thing controlled better is state level individual's privacy abuse.
@@00101001000000110011 not it would. You are wrong and you should feel bad.
@@mihailyonkov8988 it's hard to feel bad about saying something that can be factually proven, by someone who makes such a stupid english mistake - which clearly is not a typo at that - and has the argumentative ability of a 4 year old child. current day chatbots can do better than you immeasurably.
if you are too ignorant to see how corruption can not be fought properly with something like the Digital Euro and/or how it would/will result in civilian's privacy being abused i do feel bad for you. not because you are ignorant, everyone is born that way, more so because you cannot put in the effort to educate yourself despite how easy it is to do so and the severity of the stakes.
making a mistake is only human. insisting on that mistake is foolish. expecting a different result from that mistake is just insanity.
Big brother, 1984, brave new world all wrapped in one package. And people are LOVING it
Creeps me out that some many in the comments enthusiastically welcome this dystopian Trojan horse. Treason is all around. They don't mind you being cut off from your bank account for not behaving in line with the state ideology, as is common now in China. People like that can be bluntly considered traitors, they sell you out from their comfort.
This video was sponsored by the ECB
Found the flat earther
Found the commie@@Dumbledore6969x and the earth is round
@@bob_0146 ok but look at the comments. It's depressing
WE HAVE TO RESIST THIS!
As an European I support this move so we controll our own business not foreigners
why? don´t you already have a bank account?
@@GwainSagaFanChannel These morons have not been listening to the video.
Bro, we cannot resist 2 for 1 promotion in Lidl. How can we resist this?
I better invest in a matrass, king size and stash stuff in it...