European Central Bank wants a digital euro, these four countries say ‘no’

The European Central Bank’s plan to launch a digital euro is being met with resistance by many in Germany, Austria, the Netherlands and Slovakia.

The concern is that a central bank digital currency would make them dangerously dependent on technology. They also worry that a CBDC would invade their privacy and put their savings at risk.

These fears stem from authorities’ pursuit of a CBDC that they believe is better than physical cash, with authorities set to vote on its implementation in late 2025.

ECB officials told Bloomberg that the digital euro would have enhanced security and privacy features. Encryption and hashing would ensure transactions are private.

The bank will also ensure that the currency is easy to use and accessible for seniors and newcomers.

The bank’s President, Christine Lagarde, reiterated in her statement in 2023 that the digital euro will co-exist with physical cash and its transactions will be free.

CBDCs and conspiracy theories

Europeans aren’t the only ones concerned about CBDC.

Politicians in the US, especially those on the right, oppose the digital dollar.

Republican candidate Donald Trump has vowed to fight against CBDCs if he wins the 2024 presidential election, calling them “very dangerous” due to government overreach.

Trump was once not a “fan” of Bitcoin (BTC) or cryptocurrency in general. See below.

I am not a fan of Bitcoin and other Cryptocurrencies which are not money and whose value is highly volatile and in the air. Unregulated Crypto Assets can facilitate illegal behavior including drug dealing and other illegal activities….

— Donald J. Trump (@realDonaldTrump) July 12, 2019

The twice-impeached former president, who faces a sentencing hearing on 34 state charges on Sept. 18, has since embraced the industry and now has at least $1 million in digital currency.

Florida’s Republican Governor Ron DeSantis also opposes digital dollars, CBDCs and other foreign-issued digital currencies.

Other opponents argue that CBDC would make it easier for governments to follow China’s example and introduce a social rating system where bad behavior is punished and good behavior is rewarded.

Any chance of implementing a US CBDC or digital dollar would require approval from the Senate, House of Representatives, and the president. Over the past few years, the number of central banks researching or working on CBDCs has increased.

China has already introduced a digital yuan and the Bank of England is in the design phase of a digital pound. Authorities will make a final decision on the currency in the next two to three years.