For centuries, monetary items have walked a tremendous path from cowrie shells to cryptocurrency. The first certified coinage in the modern aspect was not there until the 7th century BC. Most historians believe that the residents of Lydia (in present-day Turkey) issued the coins with a lion figure on them. Did you know that they had leather money in Ancient Rome while we have been familiar with banknotes for one thousand years? And then credit cards. All of these have one common point; Money is supposed to be durable, easy to carry, convertible and centralised.
Undoubtedly, the great leap in the financial world was Bitcoin. When it was released with an elaborative manifest by Satoshi Nakamoto, this currency had an earthquake effect on the current governments and regulatory authorities. Bitcoin was against one of the pillars of being a monetary item; it has never been centralised and was encrypted from beginning to end, making it out of the question to chase.
The holder’s anonymity and the massive demand for cryptocurrencies to be scarcer than hen’s teeth. Although it has always been the most volatile and fragile currency affected by all waves, including pandemics, Fed decisions, wars, nonsense tweets of celebrities, and many more, today, Bitcoin and other cryptocurrencies are still the future milestones.
What is a Digital Euro Currency?
Considering how popular cryptocurrencies are, we can understand that digitalising finances is the next step toward a faster, easier and more secure way to make your daily payments. What can be better than melting the future and a colossal trustworthy currency in the same pot? This is when the digital Euro steps onto the stage.
Undoubtedly, the Eurozone is the world’s largest economy when we look closely at the ratios of exports. Twenty-seven member states in Europe create a tremendous habitat with a 450 million population. When we think of the thousands of transactions, international money transfers, and exchanges, the traditional Euro can be a slow-moving instrument.
This is why the European Central Bank realised that it should take action to create cashless payment methods which are as smooth, secure, and speedy as possible. Since online purchases and digital banking are rising, ECB shaped a digital currency to give another legal alternative to cryptocurrencies.
Briefly, we can define a digital Euro as a digital banknote for the Eurozone. Although it is significantly new, the idea of a strong currency having been digitised was accepted by the financial world interestedly. The potential new form of virtual money can be a game-changer in many ways. More importantly, it can gather the massive amount hidden in cryptocurrencies and carry them to the surface, so-called legalised and registered.
What are the Advantages of Digital Euro?
To be frank, the Euro is one of the most trustable and solid fiat currencies worldwide. Even the Ukraine and Russia war could not harm it in the long term while all markets were down. The belief in the strength and stability of the Euro makes it a safe port for investors and businesses even though they are on a large or small scale. Therefore, it is highly likely that Digital Euro with legal value guaranteed by the European Central Bank will soon be the apple of the eye for international money transfers.
Another one of the appealing digital Euro benefits is its usability in the 19 countries in the Eurozone with fruitful amenities. The transactions will probably be more affordable and faster than the traditional Euro because of the detailed system registration. Moreover, businesses and private citizens can utilise the advantages of the digital Euro.
All in all, from an economic perspective, digital Euro currency can be one of the biggest successes of the Eurozone after the birth of Euro and SEPA bank transfers. Although it is pretty new, it has already made a name for itself among companies in the European Union and its partners. The time will show whether the general innovative approach of the EU will be successful or crowds will be conservative against this monetary item.