The impending launch of a digital version of the euro has been a topic of much discussion in recent years. Seen as a European answer to the rise of digital currencies and an attempt to modernize its monetary system, the European Union’s commitment towards a digital euro has garnered both anticipation and skepticism.
With the global race to launch central bank digital currencies (CBDCs) heating up, European economists are raising eyebrows over the design and intent of the European Central Bank’s (ECB) approach to their Central Bank Digital Currency (CBDC).
Questionable Design Choices
Many financial experts and academics closely observing this journey have expressed concerns over whether the project will truly cater to the public or primarily serve banking intermediaries. A report from University of Bern economists Cyril Monnetm and Dirk Niepelt is the latest to throw a spotlight on design flaws in the CBDC initiative.
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