Digital Euro Association Blog

4-part series on the digital Euro: The Digital Euro - on its way to tokenized money.

Aug 5, 2021 11:00:00 AM / by Manuel Klein, Alexander Bechtel posted in Central Bank Digital Currency

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Episode 4: Why do we need a digital euro, who will create it and when will it exist?

 

In the fourth and final episode of the four-part series on the digital Euro, Alexander Bechtel and Manuel Klein address the crucial question of why the euro should be digitized and which institution will ultimately provide it. After a detailed analysis of the existing money system in the first episode, as well as a description of the digital euro issued by the public and private sector in the second and third episode, the last episode provides an outlook into the future and presents concrete use cases of the different forms of the digital Euro. The goal of the episode is to understand which benefits a Digital Euro will bring, which institutions will provide it for which purposes, and when we will see the Digital Euro.
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4-part series on the digital Euro: The Digital Euro - on its way to tokenized money.

Aug 4, 2021 9:10:14 AM / by Manuel Klein, Alexander Bechtel posted in Central Bank Digital Currency

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Episode 3: Private Digital Euro

 

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4-part series on the digital Euro: The Digital Euro - on its way to tokenized money.

Aug 3, 2021 12:46:47 PM / by Manuel Klein, Alexander Bechtel posted in Central Bank Digital Currency

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Episode 2: Public Sector Digital Euro (CBDC)

 

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4-part series on the digital Euro: The Digital Euro - on its way to tokenized money.

Aug 2, 2021 4:55:55 PM / by Manuel Klein, Alexander Bechtel posted in Stablecoin

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Episode 1: Digital vs digitized money: What is the euro and in which forms does it exist?

 

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cLabs has joined the DEA

Jul 30, 2021 1:32:01 PM / by Digital Euro Association

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We are pleased to announce that cLabs has joined the DEA community and is now an active and supporting institutional member.
cLabs aims at creating global prosperity by building financial technology.
cLabs is working on celo, an open-source blockchain for peer-to-peer payments. Celo makes crypto and stablecoin payments accessible on mobile phones. Their stablecoins cUSD and cEUR enable safe and efficient cross-border payments and, thus, intend to foster financial inclusion globally. The DEA is convinced that the partnership with cLabs will be exceptionally valuable. The cooperation will help further support our mission to contribute to the public and political discourse on a digital euro.

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Results of the Digital Euro Experiments by the ECB

Jul 22, 2021 1:45:30 PM / by Manuel Klein

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The European Central Bank (ECB) recently announced that it will start an investigative phase of the digital euro project in Q4 2021. While this was not a big surprise to many who closely follow the worldwide discussions about CBDCs and digital money, the ECB released a very interesting report on experiments that were conducted over the past 9 months. This report and its results caught many by surprise. It shows that the ECB has already tested different technologies as the core infrastructure for a potential digital euro and investigates how to mimic cash-like privacy and offline payments in a digital world. This article provides a brief overview about the background of why the ECB looks into the digitization of physical cash, which experiments it has already conducted, and which results these experiments produced.

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DEA Statement on the Launch of the Digital Euro Project by the ECB

Jul 16, 2021 10:50:31 AM / by Digital Euro Association

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What did the ECB announce?

On July 14, the European Central Bank (ECB) announced the launch of a digital euro project, a project that will determine whether a central bank digital currency (CBDC) will be introduced in the euro area. The project will start with an investigation phase taking from Q4 2021 to Q4 2023.

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Call to Action: Why the European Central Bank (ECB) should set up a Digital Euro Lab

Jul 2, 2021 1:54:45 PM / by Digital Euro Association

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Central bank digital currencies (CBDCs) have progressed from being purely theoretical concepts to one of the highest priorities for central banks around the world. As the European Union understands itself as a global technology leader, it is crucial to deepen and accelerate the research on a digital Euro. The Digital Euro Association (DEA), a think tank specialized in digital money, offers expertise and know-how related to digital money through its more than 180 renowned experts. With this call to action, we highlight the importance of a digital Euro for the Eurozone and suggest establishing a Digital Euro Research Facility, a Digital Euro Lab that includes experts from financial institutions, think tanks, the (tech) industry, and other sectors. This proposal is in line with the actions conducted by other major central banks like the Bank of England and the Bank of Canada. The DEA would be thrilled to provide assistance in creating such a Digital Euro Lab and share input and research resources for detailed analysis about the digital Euro in collaboration with the European Central Bank (ECB).

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Can central banks succeed in the marketplace for digital monies?

May 5, 2021 4:24:44 PM / by Prof. Dr. Peter Bofinger, Thomas Haas

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The discussion about central bank digital currencies (CBDC) has gained an impressive momentum. So far, however, the main focus has been on the macroeconomic implications of CBDCs and the narrow perspective of developing a digital substitute for cash. This paper adds a microeconomic dimension of CBDC to the discussion. We provide an overview of the existing payment ecosystem and derive a systemic taxonomy of CBDCs that distinguishes between new payment objects and new payment systems. Using our systemic taxonomy, we are able to categorize different CBDC proposals. In order to discuss and evaluate the different CBDC design options, we develop two criteria: allocative efficiency, i.e. whether a market failure can be diagnosed that justifies a government intervention, and attractiveness for users, i.e. whether CBDC proposals constitute attractive alternatives for users compared to existing payment objects and payment systems. Our analysis shows that there is no justification for digital cash substitutes from the point of view of allocative efficiency and the user perspective. Instead, our analysis opens the perspective for a retail payment system organized or orchestrated by the central bank without a new, independent payment object.

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The voice for the digital euro: The Digital Euro Association

Apr 28, 2021 3:52:13 PM / by Manuel Klein, Jonas Groß, Philipp Sandner posted in CBDCs, Crypto, Central Bank Digital Currency

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Recently, the Digital Euro Association, a thinktank around the digitization of money, was launched to help shaping the discussion around the digitization of money — especially in the Euro area — to stimulate public discourse and act as a unified voice on digital money. In this article, we discuss current initiatives around the digitization of money and outline how the Digital Euro Association fits into this discussion.

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