- The world is getting excited about a digital Euro, but one already exists
- Any Euros you use and transact in digitally are digital Euros
- This means that banks transfers, purchases and more already use a digital euro, not a physical Euro
Everyone seems to be getting their panties in a bunch over the idea of digital currencies. Sure, cryptocurrencies are really cool and they work really well, but all this talk of a digital Euro or a digital Dollar seems like pointless noise.
When you boil it down, what’s the difference between a new digital Euro and a plain old regular Euro? Well, this is the difference!
You Can’t Touch it
As it stands, the current Euro is both digital and physical. The idea of creating an entirely new currency and calling it a digital Euro is just beyond madness. A digital Euro already exists, people just don’t seem to get it. The digital Euro is already in your bank account and you can already spend it all around the world using your bank issued debit card. You can even use this digital euro to top up other apps, such as Revolut, and use the digital Euro there.
We’ve started exploring the possibility of launching a digital euro. As Europeans are increasingly turning to digital in the ways they spend, save and invest, we should be prepared to issue a digital euro, if needed. I’m also keen to hear your views on it https://t.co/0ZuU2ZZgCp pic.twitter.com/CoY5sN7Yoz
— Christine Lagarde (@Lagarde) November 1, 2020
When you do things like this, do you really think your bank sends a bunch of paper money to another bank or application? No. It just sends digital Euros between banks. What Christine Lagarde means by creating a digital Euro is trying to find out whether Europe is ready to say bye, bye to cash.
She wants to create a cashless society, but the ECB is weighing up the pros and cons of cutting cash from Europe. Virtually everyone has a bank account and a linked card, and if not, you can create them for free with these new digital banks. Aside from companies looking to evade tax and cook their books in the most rudimentary way, which businesses don’t accept cards?
Say Bye Bye to Paper Money
The digital Euro is already here. It already exists. The ECB is simply suggesting that it removes paper money from the system. This could be great for Europe, and the rainforests which we chop down to make the paper. But, most importantly, it’s incredibly exciting for the betterment of society.
Imagine a world where you get to the till and the cashier doesn’t say, “sorry, we don’t accept cards” or “you have to spend at least €10 to use your card here”. Wouldn’t that be amazing? A world where every business has the power to accept electronic payments with ease and no stupidly high fees from banks simply to process the payment.
This is the way Europe is going, and Christine Lagarde is making sure that it happens during her tenure. So, get on board with the fact that the digital Euro is already here and start kissing goodbye to dirty paper money and coins. Seriously, why do you want a bit of paper that’s been god knows where…