134

The digital euro has enraged half of Brussels. Here’s what you need to know. (www.politico.eu)

submitted 4 days ago by Sunshine@piefed.ca to c/buyeuropean@feddit.uk

37 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[-] thericofactor@sh.itjust.works 129 points 4 days ago

a proposed electronic version of the physical euro that has banks and right-leaning politicians fuming.

That should tell you enough about why we need it.

TL;DR the digital euro isn't stored in a bank, but in a digital ledger, making it impossible for banks to use it as they wish for investments, mortgages or trading.

Never again do banks need to be saved by governments from their own bad and risky investment decisions because they are "too big to fail".

[-] john_t@piefed.ee 50 points 4 days ago

From what I've read in other news, the digital euro wallet will have a hard limit on the amount you can store in it, something like 1000 euros for example. Also, it needs to be linked to a physical euro bank account. Those features combined prevent fraud and speculation. It's mostly to be used as an online payment method to circumvent the Visa/Mastercard american payment duopoly.

[-] Amberskin@europe.pub 11 points 4 days ago

I can confirm European banks are actively participating in the definition and implementation of the ‘digital euro’. So the ‘banks are fuming’ thing is bullshit.

Crypto-scam ‘companies’, on the other hand…

[-] wewbull@feddit.uk 15 points 4 days ago

That doesn't mean bank accounts disappear. Banks will still hold your digital euros for you and pay you interest so that they can invest your money and make more money.

Nothing changes.

[-] DacoTaco@lemmy.world 4 points 4 days ago

All depends on how its implemented tbh. If its not regulated correctly it'll turn into what any digital currency is: a shitshow.
Im all for, if its done right.

Granted, i have yet to look into the proposal so no idea what they have in mind! Its on my todo list!

[-] Cyber@feddit.uk 4 points 4 days ago

But isn't the bank lending out your money and charging interest... which they pay back (some) to you?

If that doesn't happen and the digital euro just sits under your bed, then how do savings work vs inflation?

[-] grue@lemmy.world 13 points 4 days ago

I don't know if it's different in Europe, but where I live bank savings account interest has been so low as to be a joke my entire adult life. If your goal is to have an investment or even just beat inflation, a bank account ain't it.

[-] wintermute@discuss.tchncs.de 6 points 4 days ago

The digital euro doesn't stop you from keeping doing it. It only replaces cash. Instead of withdrawing cash from the ATM to keep it in your wallet, you withdraw digital cash and keep it in your phone.

[-] Cyber@feddit.uk 2 points 4 days ago

True, but that would be a phone app which has to come from an official (US) app store on a phone that is using offical (US) firmware...

I'm all for having a financial system that we can use 100% disconnected from the US, but it's the details that makes this hard, not the initial concept of e-Money.

But, back to the original point, I don't know how interest would work on money in an eWallet. I'd want to keep all my funds earning for me, which means loaning to others and then getting something back... so I don't want those transactions sitting in a 0% "safe" place... I'm either saving or spending.

So, if we can just have a EU version of Visa / Mastercard as step 1 that would be best. I think that's just arriving...

this post was submitted on 20 Sep 2025

134 points (100.0% liked)

Buy European

7190 readers

413 users here now

Overview:

The community to discuss buying European goods and services.

Matrix Chat of this community

Rules:

Be kind to each other, and argue in good faith. No direct insults nor disrespectful and condescending comments.
Do not use this community to promote Nationalism/Euronationalism. This community is for discussing European products/services and news related to that. For other topics the following might be of interest:
Include a disclaimer at the bottom of the post if you're affiliated with the recommendation.
No russian suggestions.

Feddit.uk's instance rules apply:

No racism, sexism, homophobia, transphobia or xenophobia.
No incitement of violence or promotion of violent ideologies.
No harassment, dogpiling or doxxing of other users.
Do not share intentionally false or misleading information.
Do not spam or abuse network features.
Alt accounts are permitted, but all accounts must list each other in their bios.
No generative AI content.

Useful Websites