Digital Euro


Feb 10, 2021
The ECB are considering a digital euro. This will "allow individuals (and companies) to have deposits directly with the ECB".

This may have the effect of eliminating the need to deposit with the normal banks.

If this had been available during the financial crisis, it would have made it much easier for people to move deposits out of the local banks and into a more reliable location.

In Greece and here, this could have caused a full collapse of the banking system. It was hard to move money out of Ireland.

Removing reliance on the local banks in each country makes things fairer with all Euros being treated the same. In the financial crisis, there were effectively German Euros and Greek Euros. It was hard to convert one into the other due to difficulty in creating German bank (and other EU countries) accounts due to things like know-your-customer rules for avoiding money laundering.
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