China may be on the verge of launching its digital yuan; Europe may not decide whether or not to participate in the CBDC race until January 2021.
Europe and its allies take their time in planning, designing their CBDCs. Facebook and China would be bad examples that should be avoided.
Time for reflection
The president of the European Central Bank (BCE), Christine Lagarde, said a decision on the creation of a digital euro could be taken in early 2021.
She explained on November 12, 2020 during an online conference, that the establishment of a CBDC was not a race against time and the BCE didn’t want to be the first institution to put digital currency into circulation.
The results of a consultation launched in October 2020 with member countries should however be released in January 2021.
The guard said that based on his first impressions, the BCE might well go in the direction of a CBDC.
China vs Western countries: the hare and the tortoise of the CBDCs?
Christine Lagarde took the example of Libra (≋) and that of digital yuan to explain the reasons why the BCE could not rush into launching a CBDC.
According to her, the design of the project could take 2, 3 or 4 years. The establishment of a CBDC raises many concerns, such as measures to combat money laundering and the financing of terrorism, and the protection of users’ private data.
The governor of the US Federal Reserve (FED), Jerome Powell who was among the panelists, also insisted on the need for a correct set-up and not a race for first place in the launch of a digital dollar.
The governor of the Bank of England (BoE), Andrew Bailey, indicated that users have a right to expect currency, whatever its form, to be of value.
The guard affirmed his support for a digital euro on several occasions, even when she was still the head of IMF.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
In 2, 3 or 4 years, PlanB’s Stock-to-Flow (S2F) forecast places Bitcoin (BTC) above $ 100,000. Its adoption rate should then explode well before the launch of a digital euro. The most important element in defining a strategy is timing. The strategists of the ECB, the FED and the BoE are probably like this fund that bets $ 1 million against the S2F: There is no fire, Bitcoin is just a scam that will be gone soon.
Litecoin, welcome in the Silver Age