By Hassan Mehmood (Saudi Arabia)
The first one to get on board with the digital currency program was the government of China, and it already has started to run tests and launch prototypes. The Treasury Secretary of the USA, Janet Yellen, is not a fan of decentralized cryptocurrencies, but she is willing to invest the federal reserves for launching a digital dollar. Now, it is time for Europe to jump on the cryptocurrency bandwagon.
Head of European Central Bank (ECP), Christine Lagarde, has told media that a central bank digital currency (CBDC) in the form of digital euro is under official consideration. The question of concern is not the topic that when and how the digital euro would be introduced. Lagarde is focusing her attention on more pressing matters like the expectations of the EU citizens for the digital euro.
Lagarde pointed the attention of crypto enthusiasts in the media towards the privacy issues that the citizens are most concerned about in the event of the centralized digital currency debut. She claims that the people do not wish to compromise their privacy by the use of a digital euro, and they do not wish to work with a central bank digital currency unless it provides them with security.
She further added that the data from 80 different central banks in the world shows that the market demand for a centralized and regulated digital asset is increasing. Janet Yellen, US Treasury Secretary, also recognized the potential of digital currencies to provide fees-free transactions and faster liquidity. Lagarde believes that it is the responsibility of the government to provide citizens with better monetary and investment options.
Is it Possible to Maintain Anonymity with CBDC?
An independent viewer would agree that perfect anonymity is not possible with a centralized digital asset. Meanwhile, CBDC forms might not prove a much effective hedge as they would depend on the same infrastructure as fiat currencies. Lagarde explains that with money, people have more privacy, and they would not be able to reciprocate that advantage with a digital euro.
In her opinion, many citizens are aware of the risk of complete anonymity, and they would be able to put their trust in CBCD if they are given privacy protection. According to her, the ECB wishes to study the subject of CBDC in more detail before making any announcements. Her statement has confirmed that central governments have started to take a serious interest in the cryptocurrency markets.
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