International monetary system is facing a rough change: private cryptovals à la Bitcoin could follow digital money ied in the foreseeable future of central banks. A first Chinese attempt to the Olympic winter games were expected to follow other countries, which expects at least Ralf Wintergers, the boss of the Munchner Banknoten manufacturer Giesecke + Devrient.
China Prescht ahead
"The People’s Bank of China has begotten, to the Olympic Winter Games 2022 a so-called "Digital Currency Electronic Payment" intake", said winter. "That is new." He looks at the Chinese envision as the first live trial. "China and Sweden are the two countries who are most advanced, with China with the contested launch to the winter games. We are just in the beginning of the development as Europe."
Technically, a digital euro was ahn to the Bitcoin. But in contrast to the famous cryptography hour he under the supervision of a central bank. Such a euro has existed as a digital unit and be available for online businesses. One needed, like the Bitcoin, a separate wallet in which the digital money is stored. Modern smartphone banks have already docked them to the current accounts.
G + D has more than 100 central banks internationally as customers. In addition to the banknote printing, the company is now also specialized in digital security as the shutter.
Europe wakes up
"There is currently a wake up in the EU", said winter. "The ECB is committed to the topic, and the G20 Finance Ministers are currently developing a fundamental paper to describe the basic rules of digital central bank maintenance."
The tarpaulin of Facebook, the crypto preservation Libra had a debate about the question had the question, whether central banks like the ECB should give an answer with their own digital detention. The German banks want to be strong for the introduction of a digital food in the euro area. "We need a digital Euro in Europe", Had the Prasident of the Federal Association of German Banks, Hans-Walter Peters, said in autumn 2019.
"A digital euro would be an important contribution for a strong Europe that concerns the challenges of the digital revolution with determination", Peters said. If Europe does not move itself to the topic, it will be driven by others or "out of the way".
First of all, understand advantages and disadvantages
Bundesbank boss Jens Weidmann, however, warned in January in the Handelsblatt before the unuitized introduction of digital central bank money. "I do not think about always calling the state immediately. In a market economy, it is first of all of the company to develop a corresponding offer for customization." Weidmann pladated for dam, advantages and disadvantages. "First of all, it’s about understanding the positive and negative pages of digital central bank money. Then it can be decided whether it is needed and the risks can be mastered."
G + D-Chief Wintergers sees three gross challenges: the basic security of a digital preservation, protection of privacy and risk for the banking system.
Unlike the transfer of a bill when paying at the store budget, any digital transaction leaves traces – concerns and criticism of pruners were preprogrammed in imports of digital money. Even with a digital maintenance, privacy and privacy love is true, the boss of the 1852 founded company argues.
"Technically, you get that, that’s a matter of wool. A digital maintenance can be designed so that all transactions up to any threshold – for example, 1000 euros – are completely anonymous and unable, and transactions only had to be deposited in particular via this threshold."
The digital money project at G + D is called Filia, Latin for daughter. This includes both the production of digital money as well as the complete money circulation, said wintergers. The company therefore discusses with various central banks worldwide, how to implement such a technique.
But not only the protection of privacy must be deducted according to Wintergers withdrawal, but also the impact on finance. "Cash is ied to the business banks, and then it comes to us consumers", said winter. "In a digital maintenance, I can theoretically go the coverage of the central bank directly to the consumer and burst the banking system." The gross question: "But if you want that, you did not create a singular breaking point?"
Possible benefits for billions
On the other hand, digital profits could offer advantages for billion people, argues wintergers. "The large criticism of the current financial system is that many people in the world have no access to this. According to estimates, about three billion people do not have a bank account." This applies to many African Lander, but also parts of Latin and Sudamerikas. "But the bank account is the key to loans and other services that provide banks."
The second criticism is the result of fraud. "The theft of card numbers has been a problem of cybercriminality for years." A third point: the relative low speed of payment transactions, especially internationally. As a fourth point, Wintergers calls the cost of the payment system. "In exactly this four licking was a digital central banking dish."