đȘđș Banks to ECB : âWe donât see eye to eyeâ on the Digital Euro. (@FBFFrance on #CBDC)
đ Yesterday in Paris, a key event took place between @ecb , @banquedefrance , @DGTresor and key players from banking and payments â thanks to the leadership of @FRANCEPAYMTSFOR
đŹ The dialogue is finally opening. It was a privilege to hear from Piero Cipollone (ECB Executive Board), who is shaping the digital euro strategy, alongside @ErickLacourrege and Adeline Bachellerie, @SocieteGenerale , @WorldlineFrance , and many others.
â While the ECB confirmed its continued support for cash, the reality for the digital cash project is stark:
â There is no consensus on a Retail CBDC in Europe!
â Banks oppose itâseeing it as added cost and complexity, conflicting with higher-priority projects like #WERO, #OpenBanking, #InstantPayments, and #RequestToPay.
â Citizens arenât demanding itâprivacy and capital control remain serious concerns. Limited holdings mean it is not at all like true cash for them!
â Merchants canât even hold it, as the ECB insists CBDC is a âmeans of payment,â in a "reverse waterfall" not actual moneyâakin to Visa or Mastercard.
đĄ The ECB seems to be solving the wrong problem. We agree on the diagnosis, and the Euro needs a Digital Euro form, but not this version.
đ The ECB seems to focus on banksâ concerns, blocking citizens from holding CBDC in order to preserve bank liquidity and avoid impacting lending. But this could give birth to a dead born Digital Euro due to a lack of adoption. A new design is clearly needed.
đïž Central banks need a Euro-based cryptocurrencyâprogrammable, blockchain-compatible, and capable of supporting the tokenized economy.
đ«đ· Banque de France is already leading with #DL3S, a DLT-native solution enabling atomic and native settlements (DvP, PvP)âa real #CBDC at the heart of central banking. Perhaps the ECB can learn from this and build a Layer 2 cryptocurrency euro on top of this Layer 1 blockchain foundationâto finally play on the same field as #Bitcoin and #Stablecoins.
â±ïž Itâs time to rework the design, address real needs, and build a future-proof Euroâcross-border, truly digital cash, not a Web2 interface for online payments, but #DeFi-ready. Even then can it even compete with the rising adoption and proven value of #Bitcoin?
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