The European Central Bank: the rise of the digital euro. We will pay with a watch and glasses

For starters, a pilot program, but no longer to research the market, but to implement a digital currency. EBC he announced that he was following in the footsteps of technological giants - for example Facebookwho will have his own cryptocurrency - and start working seriously on the digital euro. We cannot count on a digital zloty. NBP focuses on ... "National Cash Security Strategy".

The idea of ​​the digital euro has been talked about for a long time, but we heard the specific information about the start of work only on Wednesday, 10.02.2021/XNUMX/XNUMX, during a panel organized by the Bruegel think tank in Brussels. 

"Central banks have nothing else to do but just enter the digital path" - Fabio Panetta, Member of the Executive Board of the European Central Bank, admitted directly.

We also know that in April this year the details of the pilot program will be announced, the aim of which will be to create digital euro. The ECB is working closely with the European Commission on this matter. The digital euro is to strengthen the role of the traditional euro, especially in international transactions.

Payment with a watch and even glasses

However, the digital euro will not be a classic decentralized cryptocurrency. Its issuer will be the European Central Bank, but it will also have all the attributes of cryptocurrencies. Payments will be encrypted and the money will be stored on electronic wallets that will be compatible with any device: smartphone, watch or glasses. The plans, however, are much more ambitious.

"In the near future, we will simply pay for purchases with a blink of an eye " - convinces Fabio Panetta.

Stability and anonymity of transactions

Interestingly, the ECB guarantees not only the security and stability of the digital euro, but also anonymity. Of course, up to a certain threshold, because today also all major transactions must be fully authorized. But the daily payments in stores would not involve any data being transferred to the seller. This is more than today, because if we currently pay with a payment card, the recipient has our basic data.

The account is also to be free to face cryptocurrencies that are decentralized, but a fee is charged for each operation (although often a minimal one). Initially, however, it will not be possible to transfer all the savings there, lest it destabilize the traditional currency system. What will be the limit? This is not known yet, but it is said about 3. euro for starters.

NBP: digital zloty will not be created

Poles, as citizens of the European Union, will also be able to enjoy the benefits of the digital euro. For now, however, they cannot count on a digital zloty. Doubts are dispelled by the NBP president, prof. Adam Glapiński.

“Some, even many, central banks are examining the possibility of introducing central bank digital money. We are also analyzing it, we are watching the research. A whole range of analysts deal with this with us. We are also talking to representatives of other central banks. If it turned out to be beneficial, we would have done it. For now, however, there are rather arguments against this concept " - points out prof. Adam Glapiński, President of the National Bank of Poland.

The National Central Bank is working on the "National cash security strategy", although especially in times of the pandemic, it turned out that hardly anyone uses it for legal transactions, because even in the neighborhood grocery store you can pay by card. According to the NBP, it is precisely free access to cash that is, however, the foundation of civil liberties. 

“We will strive to develop such regulations that there is a free choice of payment methods and payment instruments. This freedom of choice, so close to every Pole, is crucial " - says prof. Adam Glapiński.