Central Banks in the Eurozone are planning to launch a wholesale Central Bank Digital Currency (CBDC) in the near future. This CBDC is designed for financial institutions and businesses, and is intended to streamline financial operations and enhance efficiency in settling transactions. The Central Bank is exploring various protocols, blockchains, and even a proprietary Distributed Ledger for Securities Settlement System (DL3S). Adopting DLT in financial markets could yield annual savings of up to $100 billion.
However, the enthusiasm for CBDCs is not without its controversies and challenges. There are concerns about individual privacy and the impact on commercial banks. Central Banks must address these concerns to avoid regulatory roadblocks and maintain public trust.
The uncertainty surrounding the privacy of retail CBDCs has led to a resurgence of interest in privacy-focused cryptocurrencies. Coins like Monero, Dash, and ZCash offer enhanced privacy features, making them attractive alternatives for individuals concerned about their financial transactions being monitored or tracked.
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| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇫🇷 🇩🇪 🇮🇹 🇪🇸 |
| Sentiment | neutral |
| Relevance Score | 10 |
| People | François Villeroy de Galhau |
| Companies | Monero, France’s Central Bank, Dash, European Central Bank, Distributed Ledger for Securities Settlement System (DL3S), ZCash, Distributed Ledger Technology (DLT), Central Banks in the Eurozone |
| Currencies | Monero, Dash, Bitcoin, Zcash, Euro |
| Securities | None |
