Nobody knows what a digital euro will look like. ECB is in the process of exploring the possibility. Philipp Sandner, Blockchain Expert
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China is with its digital Yuan ahead of Europe or the US. The ECB is investigating the possibility, with the aim of having a digital Euro 2025. We will see China launching the digital Yuan this year. That is almost 5 years ahead.Philipp Sandner, Blockchain Expert
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CBDC is a variant how the Euro will run on a modern infrastructure.Philipp Sandner, Blockchain Expert
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The Expert
This interview is part of our series with subject matter experts. Our guest today is Philipp Sandner (https://www.linkedin.com/in/philippsandner/), Professor at Frankfurt School of Management and Finance. There he is head of the Blockchain Center. He is also a member of the fintech advisory council to the German federal government (FinTechRat), Chairman of the International Toke Association, as well as a contributor to Forbes (https://www.forbes.com/sites/philippsandner/). According to one of Germany’s largest newspapers Frankfurt Allgemeine Zeitung (FAZ), Philipp is also one of the 30 most influential economists in the German-speaking area in their ranking for 2018 and 2019. He is also co-founder of the German Blockchain Association.
The situation of the Federal Reserve in developing a digital central bank Dollar is like the ECB. Both are early in exploring the topic. Philipp Sandner, Blockchain Expert
The Digital Euro
Central banks take inspiration from cryptocurrencies and are actively thinking about introducing their own cryptos, called central bank digital currency (CBDC). There are many podcasts out there talking about CBDC, especially US$, but Startuprad.io is headquartered in the city of the Euro, Frankfurt. So, we thought we shed some light on the perspective from Europe. The European Central Bank and the Federal Reserve are both in the first steps of exploring the possibilities and implications of CBDCs for the Euro and the US Dollar. But there is already a growing market in US$ stable coins, where stable coins in Euro have to stomach losses, due to the negative interest rates in the European Monetary Union (EMU). Tune in to learn more...
The difference in the US is that there is already a working alternative, the US$ stable coins. Philipp Sandner, Blockchain Expert
Further Readings / Additional Resources
Here is the link to the blockchain master program of Frankfurt School https://www.frankfurt-school.de/home/programmes/master/blockchain-digital-assets
The central bank digital currency tracker of the Atlantic Council: https://www.atlanticcouncil.org/cbdctracker/
CBDC definition https://www.investopedia.com/terms/c/central-bank-digital-currency-cbdc.asp
Definition legal tender https://www.investopedia.com/terms/l/legal-tender.asp
Stable coin https://en.wikipedia.org/wiki/Stablecoin
Tether coins https://en.wikipedia.org/wiki/Tether_(cryptocurrency)
Lender of last resort https://www.ecb.europa.eu/ecb/educational/explainers/tell-me-more/html/what-is-a-lender-of-last-resort.en.html
Money multiplier https://en.wikipedia.org/wiki/Money_multiplier
Money Supply M1, M2, M3 https://en.wikipedia.org/wiki/Money_supply
Interest rates https://www.investopedia.com/terms/i/interestrate.asp
DEFI is dominated by US$ since many people active in crypto calculate their net worth in US$. Philipp Sandner, Blockchain Expert
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The Interviewer
This interview was conducted by Jörn “Joe” Menninger, startup scout, founder, and host of Startuprad.io. Reach out to him:LinkedInTwitterEmail
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The Digital Euro and Why Stable Coins Matter