Digital Euro Explained: Control, Surveillance & the Real Agenda

"Contrary to popular reports the digital euro will not launch in October 2025 Rather its final form will be revealed to EU politicians who will then vote on whether to implement it or not"

"The last update about the digital euro rule book was published earlier this month It reveals the most recent version of the rule book received a staggering 2,000 comments from financial intermediaries And these comments will be addressed in a new version of the rule book expected to be published in Q3"

"It's not entirely clear when the final version will be published but the goal is presumably by October 2025"

"As some of you know the ECB is explicitly looking to put a limit on digital euro holdings And I'll repeat that the exact limit is up in the air Contrary to popular reports this is not to restrict Europeans from spending but to prevent the banking system from collapsing"

"In any case this is not only why there's going to be a limit on holdings but also a waterfall function wherein any digital euros you receive above the limit will be automatically converted to regular euros in your bank account to preserve bank stability"

"And what's fascinating is that the ECB has considered applying the waterfall function to all corporate digital euro inflows meaning their holding limit would be zero"

"The ECB wants to make digital euro transfers free for users but still have merchants pay fees when receiving a transaction the same way they do now with card payments The catch is that the fee will be lower and there will be a limit to ensure merchants don't get squeezed"

"In reality however merchants may not adopt it even if it becomes a legal tender A member of the ECB explained in a Q&A last year that this is because of Europe's legal tender laws which effectively make it legal for merchants to reject certain forms of payments even if they're a legal tender such as cash Given that digital euros are technically digital cash there's nothing stopping merchants from rejecting these payments too At least according to existing laws"

"Even so that doesn't mean that consumers would start paying in digital euros As that same ECB member explained it's not possible to force someone to do something even if it's mandatory And this is something we've underscored in many of our videos about dystopian technologies like CBDC's and digital IDs Sure you can force people to create a CBDC wallet or create a digital ID but you can't force them to use these products in their day-to-day activities"

"And that's why the ECB has repeatedly stated that digital euros would not provide remuneration meaning that you won't be able to earn any interest rates on your holdings"

"The ECB member admitted that the dominance of public money will be lower in 20 years time even if a digital euro is launched"

"To recap it will not be launching in October 2025 That's just when the ECB expects to complete its preparation phase After that's done EU politicians will have to vote on its approval And that reportedly takes at least 2 to 3 years This means that the digital euro may not be launched until late 2027 or late 2028"

"From our perspective hybrid CBDC systems could come much sooner than actual CBDC's And that's because the government debt that backs stable coins is becoming increasingly volatile"

"If this were to happen then it would likely result in a change in stable coin regulations that mandate them to be backed by commercial or central bank reserves creating a hybrid CBDC"

"To be blunt a global system consisting of multiple CBDC's would probably be less dystopian than a global stable coin system consisting of one or two issuers"