EU's Digital Euro Faces Opposition: A German Politician Advocates Bitcoin as Future of Currency
Summary:
The European Union is preparing for the future of currency with finalized cryptocurrency legislation and a developing Central Bank Digital Currency (CBDC), known as the "digital euro". However, not all are supportive of this move, with a high percentage of Spaniards showing disinterest and Germany's Bitcoin activist and parliament member, Joana Cotar, publicly opposing the digital euro. Cotar leads the "Bitcoin in the Bundestag" initiative and champions Bitcoin as the preferred digital solution, seeking to inform lawmakers about Bitcoin's potential. Notably, Cotar advocates for recognizing Bitcoin as legal tender in Germany, stressing the need to combat potential risks without suppressing Bitcoin's freedom aspects.
Work has been going on apace in the European Union to shape what is seen as the future of currency. In the previous year, it put the finishing touches on its milestone overall cryptocurrency legislation, known as the Regulation of Markets in Crypto-Assets (MiCA). It is slated to be implemented by 2024, subsequent to the conclusion of its second consultation last October. The plan to roll out a central bank digital currency (CBDC), referred to as the “digital euro,” is also progressing well. The Dutch Central Bank characterizes it as a simple “electronic version of public money, replicating the physical notes and coins in our pockets.” While many local regulatory bodies have welcomed the digital euro and championed its potential benefits, not all are on the same page. A recent public poll in Spain showed that up to 65% of Spanish citizens had no interest in using the digital euro. The parliament of Slovakia passed a law altering its constitution in June to affirm a citizen's right to use cash for purchases as an alternative to the impending digital currency. In contrast to the broader sentiment in the EU, a German politician is advocating for Bitcoin as the new digital solution for a financial revolution, opposing the digital euro. Joana Cotar, a member of the German parliament and a Bitcoin supporter, shared with Cointelegraph her insights on the digital euro debate and how she supports Bitcoin. Cotar stands firm in her opposition to the EU's digital cash solution, stating emphatically, “No one needs the digital euro.”
Cotar's concern is that a digital euro could give central banks the power to impose an "upper limit" on payments and assets, essentially subjecting citizens to their terms. Moreover, universal surveillance is a possibility with a digital euro. Cotar, a strong libertarian, resolutely opposes this. She cites the social credit system in China as a foreshadowing of what can happen when cash is absent and payment systems are under governmental control. To her, privacy is non-negotiable. However, the European Central Bank's program director for the digital euro, Evelien Witlox, stated in April that the ECB has no interest in accessing users' personal information. The EU's data protection regulators in October jointly announced that anonymity would be a feature of digital euro transactions.
Cotar isn't supportive of a digital euro but champions Bitcoin. She spearheads the "Bitcoin in the Bundestag" initiative, aimed at informing German Bundestag members about Bitcoin's potentials and risks. Among the changes Cotar would like to see is allowing tax and charges to be paid in Bitcoin and adopting Bitcoin mining farms for power grid stabilization. She would also like to establish a legal structure in Germany that acknowledges Bitcoin as legal tender. Cotar emphasizes the need to address possible risks such as money laundering, tax evasion, and other illegal activities linked to Bitcoin without suppressing innovation and the freedom that Bitcoin offers.
When quizzed on her feelings about other market-available cryptocurrencies, she firmly stated that her advocacy was solely for Bitcoin. On October 18, the European Central Bank (ECB) announced the commencement of the “preparation phase” for the digital euro project, following a two-year investigation into the potential EU-wide digital currency.
Published At
11/16/2023 1:55:23 PM
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