“better placed” isn’t sufficient. ECB is entering a space where they will create a mass surveillance system over the spending of 400mm people.
ECB will need a better narrative than “we’re more trusted than facebook”.
Good news for Greeks and Cypriots perhaps - the CB will not close off access to CBDC in a financial crisis, like banks closed off access to the people’s money in the Greek and Cypriot crises.
ecb.europa.eu/press/inter/da…
Do we believe that?
Apparently, yes, the ECB is going to set itself up in the risk competition as the risk-free money provider.
Apparently, no, as the ECB is going to appoint commercial banks (and others) as service providers. Including of AML/KYC which is open permission to do anything.
The fix is in? No more talk of financial inclusion?
Panetta is on more solid ground calling so-called “stable coins” unstable coins.
But loses it on the common criminality charge: "we know from recent experience that those crypto-assets are largely used for criminal activities” which the data denies.
Then, Monetary Policy:
There it is, folks. Save that tweet! Bc the future might be very different 🙂
Meanwhile, Panetta leans heavily on €3000 cap. Which is high for some, low for others, including various financial inclusion scenarios.
This is the trap - close it too much, risk failure.
Finally, a tantalising comment about cross-border international payments.
Nice in theory, but we know that we cannot transact onside borders without the foreigners getting access to our data. Nice try, but no thanks.
Privacy is #1
additional article:
Digital euro will protect consumer privacy, ECB executive pledges
ft.com/content/e59e5d…
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