Posted 10 months ago | by Ben Armstrong

EU Moves Toward a Blockchain-backed Digital Euro

The exchange of goods and services is a fundamental part of human society. Now, it looks like the idea of centralized digital currencies is hitting the EU.

Coins and Banknotes were originally backed by goods such as gold or silver. This was known as the gold standard which fell into disuse in the mid-20th century, and was mutilated to make modern fiat currencies.

Of course, most people still think that fiat currency is backed by something, which is a massive misconception. There is no relationship between the hard money that built the modern era, and the outright fraud that is being perpetrated by global central banks.

Money is Constantly “Evolving” - EU Ready for New Ideas

With the introduction of Fiat currencies money passed from being backed by a to be backed by physical commodity (generally precious metal) to being smoke and mirrors. Central banks create money on a whim, and governments spend it to secure their position of power.

Fiat currencies enabled baking systems to provide loads of cheap money, and helped to create the mega-bubbles that we see manifesting global equities at the moment. Hyperinflation may be right around the corner, especially in the EU, where the Euro is backed by nothing, not even a single nation.

The added bonus of a centralized digital currency is that it can be devalued without printing loads of 00000's on banknotes, which has been a hassle for countries like Zimbabwe, and more recently, Venezuela.

As an added bonus, digital currencies that are managed by a central bank can't actually be burned to keep warm, which is a distinct disadvantage for the modern fiat money enthusiast. The potential to keep warm with worthless banknotes isn't the greatest feature of fiat currency, but it is one of the most intrinsic.

Blockchain’s Allure is Just Too Strong

The European Union has been interested in the use of blockchain technology for the creation of digital currency and has provided its members with a set of guidelines on how to approach it.
Back on March 30 of 2020, the French Central Bank showed its interest by requesting proposals for experiments on digital currencies applications.

The Dutch Central Bank also announced in interest in digital currencies and their intention to play a leading role in any European Union experiment.

Italy has now shared their interest to join the movement with the support of over 700 Italian banking institutions. On June 18, a set of 10 considerations they consider fundamental for the implementation of a Digital Euro.

There are still a lot of questions on what will be the actual approach taken for the implementation. It is difficult to imagine a decentralized system being used by the EU or its members as this would take away their control over the currency.

Try and Stay Warm With a Hard Drive

One thing is for sure, the central bankers are looking for an exit plan from the current system. Every major Western nation is falling apart economically, and the result will likely be total socioeconomic collapse.

If you are interested in using money that is controlled by central banks, be sure to insist on the paper variety. Plastic currency is dangerous to burn (the fumes), and central bank-backed digital currencies would force you to torch your smartphone in an attempt to stave off hypothermia.

Articles on Bitboy may contain affiliate links that help us to remain profitable. It might come as a surprise, but all these great articles aren't cheap to produce. If you don't mind helping us out, please click on the links!