Digital euro

Met dank overgenomen van P.J.G. (Paul) Tang1, gepubliceerd op maandag 24 april 2023.

Bad money drives out good. This law, the Gresham’s law, has been confirmed throughout the ages.

Yet the European Central Bank believes that good money - digital euro backed by the ECB - will drive out bad - money backed by unstable banks.

As a result, they impose restrictions. To limit how much one can hold - up to 3000 euro - and where - with private actors.

To be clear, a digital euro makes sense in a digitalised economy. To maintain monetary sovereignty. To prevent private currencies - bad money - from taking over.

Yet, I have doubts about the restrictions

First because the digital euro should be viable. And why use something you can hardly hold?

Second as digital euro deposits should compete with bank deposits.

Encouraging banks, for example, to let consumers benefit from recent interest rates hikes.

Of course, this raises worries about bank funding.

But the digital euro doesn’t introduce such problems. It merely highlights the fluidity of deposits in a digital age.

Silicon Valley Bank was merely its first victim.

I understand the ECB’s wish to prioritise stability, initially. But restrictions should weaken over time, exactly as the Bank of England proposes.

Dear colleagues, the digital euro is a political project. Not technocratic.

So project of the digital euro needs political backing. So, let the Commission put all options on the table to have a real political debate.

Meer over ...

  • 1. 
    Paul Tang (1967) was van 1 juli 2014 tot 30 mei 2024 id van het Europees Parlement voor de PvdA. De heer Tang is lid van de commissies begroting en economische en monetaire zaken. In 2014 was hij lijsttrekker bij de Europese verkiezingen. Hij houdt zich als EP-lid bezig met belastingen en bescherming van digitale rechten en datarechten. De heer Tang was in 2007-2010 financieel en fiscaal woordvoerder van de PvdA-Tweede Kamerfractie. Daarvoor verrichtte hij onderzoek bij het Centraal Planbureau en was hij plaatsvervangend directeur van de directie Algemene Economische Politiek van het ministerie van Economische Zaken. In 2010 werd hij zelfstandig adviseur en daarna was hij econoom bij 'Boer & Croon'. Sinds 30 mei 2024 is het wethouder van Almere.