German Parliamentarian Joana Cotar has criticized the idea of introducing a Euro-based central bank digital currency (CBDC), stating that “no one needs it.” In a speech on November 9, Cotar argued that the European Central Bank (ECB) and politicians supporting a digital euro are motivated by a desire for total surveillance of the monetary system. She believes that people who already engage in digital payments use methods like Paypal and cryptocurrencies, while those who value privacy continue to use cash. Cotar highlighted that many Germans concerned about fiat money’s risks have turned to Bitcoin as a form of “healthy money.” She expressed concerns that CBDCs would enable unprecedented levels of surveillance, violating civil rights. Cotar also criticized the ECB’s track record of not fulfilling promises and questioned the regulator’s data protection and privacy guarantees. However, despite Cotar’s opposition, several central banks worldwide have been working on their own CBDC projects, with some already in circulation. The Bank for International Settlements (BIS) has been actively supporting CBDC initiatives and expects 24 central banks to have their CBDCs ready for launch by 2030. BIS general manager Agustín Carstens emphasized the significance of CBDCs in the future financial system, stating that they will likely become a foundational pillar. Carstens noted that wholesale CBDCs are expected to be developed quickly and become a reality within a few years, while retail CBDCs present more challenges. He also highlighted the importance of cybersecurity in implementing CBDCs and called for collaboration between the public and private sectors to address cybersecurity threats adequately. In June, the BIS introduced the concept of a Unified Ledger, a system that facilitates the coexistence of tokenized bank deposits and wholesale CBDCs on a shared infrastructure, enabling seamless settlement of interbank payments using wholesale CBDCs.

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Information	Details
Geography	Europe
Countries	🇩🇪
Sentiment	negative
Relevance Score	1
People	Agustín Carstens, Joana Cotar
Companies	Paypal, None, European Central Bank, Bank for International Settlements
Currencies	Bitcoin
Securities	None