Sorry ECB, Digital Euro Will Be More Centralized Than Bitcoin. It Is a Big NO

The digital Euro will not be able to compete with what Bitcoin offers the people.

Since the end of 2020, the European Central Bank (ECB) repeated that it was in the study phase concerning the creation of a digital Euro. The decision on the appropriateness of such a creation should fall during June 2021. With a little delay, the European Central Bank has just made an official announcement on this issue.

A digital Euro will be created.

The next step of the project consists of a 24 months investigation phase which should allow, according to the European Central Bank, “to address key issues regarding design and distribution”.

The European Central Bank is thus entering the race for the creation of a CBDC (Central Bank Digital Currency), which China largely dominates. China has been actively working on its digital yuan project for several years now. This project is well advanced as it is currently being tested in several major Chinese cities.

Xi Jinping wants China to benefit from the first-mover advantage in this new field. The goal is to be able to challenge the hegemony of the American dollar on a new playing field. De facto, the other major world economic powers will have to react in order not to leave China alone in this field.

The European Union will therefore launch itself into the battle, while the United States is still in the process of discussing the opportunity to create a digital dollar. Nevertheless, it seems obvious that the Fed will eventually move in this direction as well.

This big announcement from the European Central Bank should not make us forget that the reality of a digital Euro is still far away. It will be at least 5 years before it is available to European citizens. This means that other countries have already fallen considerably behind China.

In the press release of the European Central Bank, it appears that the institution is still hesitating on the best technical solution to implement this digital Euro.

A first solution would be to use the Eurosystem TARGET Instant Payment Settlement (TIPS). A second solution also under consideration would be a blockchain. The goal for the ECB is to rely on a solution “capable of processing more than 40,000 transactions per second”. The ECB does not say however which existing Blockchain solution it could use for this digital Euro if TIPS was not retained.

Afterward, the ECB boasts of being able to set up a system that would be better than Bitcoin from an environmental impact point of view:

“Our experimental work has also shown that the energy needs of the infrastructure would be negligible compared with the energy consumption and environmental footprint of crypto-assets, such as Bitcoin.”

This allows ECB to step into a breach opened by Elon Musk in May 2021 when he explained that Tesla was ending support for Bitcoin payments due to the environmental impact of the cryptocurrency king.

ECB is careful to explain to the general public that its purpose is completely different from Bitcoin.

Bitcoin is a transparent and decentralized system that gives power back to each of its users. Its supply is hard-capped at 21 million units, and its programmatic monetary policy gives incredible guarantees to its users. Moreover, no one can censor you if you use the Bitcoin system.

A digital Euro will not address any of these issues.

The system the ECB chooses will necessarily be centralized. The Euro can still be printed out of thin air in unlimited quantities, while the ECB will have even greater control over every transaction made by European citizens.

Greater control will obviously increase the censorship power of the EU governments.

In short, this digital Euro will reinforce the society of mass surveillance that is emerging around the world. It seems that the Chinese model, although decried by Westerners, gives ideas to European politicians.

Source: https://www.inbitcoinwetrust.net/sorry-ecb-digital-euro-will-be-more-centralized-than-bitcoin-it-is-a-big-no-ca7a88c398bd?source=rss——-8—————–cryptocurrency