<\/p>\n
On June 25, the ECB published an update on its two-year preparation phase for the digital Euro CBDC that ends in October 2025.<\/p>\n
The central bank said that privacy and data protection are its top priorities, but there are a number of disturbing features to the currency that would result in the total opposite.<\/p>\n
On June 26, crypto entrepreneur and investor Daniel Batten highlighted a few of them.<\/p>\n
\nJUST IN: ECB announce first progress report on the digital Euro<\/p>\n
Features:
\u2013 easier to surveil you
\u2013 easier to deplatform you
\u2013 easier to freeze your account
\u2013 limits on how much you\u2019re allowed to hold in your accounthttps:\/\/t.co\/ZBG6Zoi9oG<\/a> pic.twitter.com\/D2EbxhuNzu<\/a><\/p>\n\u2014 Daniel Batten (@DSBatten) June 26, 2024<\/a><\/p>\n<\/blockquote>\n
Central Bank Surveillance<\/h2>\n
A CBDC is essentially programmable money on a blockchain governed by smart contracts. This gives the bank the ability to control how much of the currency people can hold.<\/p>\n
\n\u201cIn order to maintain a resilient financial environment, the ECB would limit the amount of digital euro people could hold<\/a> in their accounts.\u201d<\/p>\n<\/blockquote>\n
The end game is to eliminate cash and have all financial transactions online, which can be monitored and traced.\u00a0The ECB stated<\/a> that these limits are not intended not to prevent the digital Euro from being a store of value altogether \u201cbut rather to moderate its use in this capacity.\u201d<\/p>\n
This preserves the role of banks in ensuring the efficient provision of credit to the economy, it added.\u00a0Batten pointed out that the banks would also be able to surveil people more easily, \u2018deplatform\u2019 them if they choose, and freeze their accounts.\u00a0Earlier this year he said<\/a> the ECB was among a number of banks working together to undermine crypto and financial freedom.<\/p>\n
The CBDC also features \u201coffline functionality\u201d that would offer users a cash-like level of privacy, allowing payments without an internet connection using pre-funded accounts, according to the bank.<\/p>\n
Observers pointed out<\/a> that it would still need to use the central bank\u2019s database to function, thus eliminating any privacy that the bank claims it provides.\u00a0However, a decision on whether to issue a Euro CBDC will only be made after the European Union legislative process is completed and the preparation phase concludes.<\/p>\n
When the preparation phase began<\/a> in October 2023, fintech entrepreneur Kim Dotcom cautioned<\/a> about using the digital Euro, stating, \u201cIt\u2019s a financial surveillance and control tool. First the digital Euro then digital ID and social scores. If you do or say anything they don\u2019t like your funds will be blocked.\u201d<\/p>\n
CBDC Pilots Increasing<\/h2>\n
Europe, alongside several other countries, is actively aiming to phase out cash and convert to a digital currency controlled by the central bank.<\/p>\n
According to the Atlantic Council<\/a>, only three countries have deployed a CBDC \u2013 Nigeria, the Bahamas, and Jamaica.<\/p>\n
There are 36 CBDC pilots ongoing, including Europe, China, Russia, Brazil, India, Japan, South Africa, and Australia.<\/p>\n
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