Translation:
Another billion grave among many in the Socialist People's Union from Brussels?
👇🏻
According to a study by the consulting firm PwC on behalf of the European credit associations, the 19 banks examined would have to expect conversion costs of over 2 billion euros. Extrapolated to the entire euro area, there is therefore a threat of charges between 18 and 30 billion euros.
Many credit institutions are critical of the benefits of the digital euro, as a parallel system would mainly cause additional costs and complexity without creating a recognisable added value for customers. Existing payment methods already met high standards in terms of speed and security.
According to the study, the necessary technical adjustments in the banks would be particularly expensive. The authors also warn that almost half of the available skilled workers would be tied up for years, which could block innovations in payment transactions.
In addition to the high costs, the digital euro also raises questions about freedom and privacy. Critics fear that the digital currency could become an instrument of state control, as payments could be restricted in terms of time or purpose. Targeted financial sanctions would also be technically possible.
Overall, it turns out that the introduction of a digital euro could be a billion-dollar problem for banks without any recognisable added value for customers. In addition, the control options of the digital currency harbour risks to financial freedom.