The preparation phase of digital euro starts in November 2023, and European Central Bank will focus on further development of a digital euro. Digital euro (CBDC) would be an electronic payment available free of charge to everyone.
Let’s first talk about money in general. From the beginning of human era there was lots of different money that people have used.
First money and first monetary system was established in Rome (753BC – 565AD)
Evolution of money:
- coins (metal, gold, silver, copper etc.),
- paper money,
- digital money.
The history teaches us many things and some of them are and will be written for our future generation.
To understand the differences in our technological advancement we need to understand the history how money is created.
As many today use paper money and digital transaction a way of paying goods and services it’s time to move to next step of money evolution, complete digital currency who will replace or paper money in future.
We have talked about CBDC (central bank digital currency) the advantages and disadvantages.
Many are scared of new digital currency’s (a way of controlling human, and expiry date of monthly income).
There are so many question open for digital currency and as we gather information about it we saw that (we are not yet ready for it).
People like to use case for paying goods but CBDC will happen (we will still use our paper money combined with digital) until people gain complete trust to digital money and banks replace our paper money forever. To gain trust of digital money banks will have to make really nice offers to clients and step by step encourage and teach people how to use it.
The preparation phase has started and the foundation of issuance digital euro have been lay down. Testing and developing a platform of digital euro for providers and user have entered a new stage. New rulebook is made for using digital euro also testing and experimenting with CBDC will be necessary and important.
Many question remain open for or future digital euro and others CBDC.