Maximum Level of Privacy for Digital Euro: Possible or Not? – 250

Digital Euro will have maximum level of Privacy but not as much as cash that's What the ECB board member says or an ECB Board member and his name is Fabio Panetta and he stopped short of saying That the digital Euro would have the Same level of privacy of cash well That's an interesting one right because Cash you can just trade for people like Directly here's one thing that I always Think about when we talk about it Specifically when we start moving into Cbdc's and people's reactions to it and It comes down to this really right Remember back when we had the Xbox One Announcement and then the PlayStation 4 Announcement do you guys remember what Happened there essentially we had Xbox Come out and they're like you're gonna Get this media box it's going to do Everything that you want to you'll have These digital licenses the disk will be Tied to the game and therefore you can't Just trade it with friends everybody Lost their damn Minds right when that Happened basically Xbox killed that product almost Immediately The general public did not want to move Into that digital age And basically what ended up happening is Right after that PlayStation changed Their actual uh presentation for this E3 I think it was E3 2012 uh if I recall

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And they basically had it added on Tacked on a whole thing at the end where He said hey can I borrow that game from You he was like sure and he handed him The game with the disc on it and this is Something that always sticks in my mind Because if you recall what ended up Happening is that digital media still Ended up taking over because of one Reason and one reason only and that was Convenience we do not have the same kind Of trade with your buddy thing that Happens all the time anymore because Xbox and Sony Microsoft and Sony have Made it so convenient to just basically Buy the game download it and start Playing it and because because of that Convenience people have given up their Rights of ownership of the disc in fact In the licensing now since this time we Have seen licenses for digital media Change to basically just a license to Play it not a license for ownership when You go and purchase even a disc at GameStop or Best Buy or whatever it may Be that comes with the digital license To basically have that and play that Item but not to own it and this is Something that maybe we'll see shaken up In the future by nfts and so on and Maybe we'll start to see a decentralized Platform where people have ownership Over their digital items but as it sits Right now you don't really have

Ownership over your digital items and It's all because they the companies that Sell these digital items have made it Just more convenient I mean this started Way way back with Steam on PC and this Was nothing new to PC Gamers right it's Been forever since people go have gone Out and purchased you know know a PC Game on with disks and installed them Right this is something that you used to Do all the time it's just non-existent On PC anymore and it's becoming less and Less of a thing on consoles in fact the Latest generation of consoles we see a Digital only version of the PlayStation 5 for a little bit cheaper so you save Some money that sounds good right but it Doesn't come with the disk player and so You don't have that disc to put in and You don't own that disk that you could Trade off to a friend In addition to that on the Microsoft Side with the Xbox One S you get a Cheaper product that doesn't perform Well and I wouldn't recommend it unless You're just wanting to play some arcade Games which then cool go have fun with That but it doesn't come with the disk Option either and it's that convenience And that lower price that really drives The adoption of this and convenience Will be what drives the adoption of Central Bank digital currencies over Cash and that's just really what's going

To end up happening here that being said The digital Euro will aim to complement Cash and mimic its best features a European Central Banker has told Lawmakers but it may not afford the same Level of privacy appearing before the Committee of Economic and monetary Affairs at the European Parliament on Monday Fabio Panetta emphasized that There was no intention whatsoever to Withdraw cash as a means of payment in The Eurozone Quote we would not deprive citizens of Any option end quote he said quote the Options that are available today for Them to do their payments would be Available tomorrow plus one additional Option end quote so how do you end up Influencing people to move over right It's like this you don't take away the Cash right away but you just end up Replacing it slowly by making it more Convenient for people that's what we're Seeing Panetta is a member of the board Of the European Central Bank ECB which Is spearheading the investigation into The possibility of a digital Euro like Cash Panetta said today a digital Euro Should be risk-free accessible and easy To use quote we'll try to replicate the Features of cash that people appreciate That citizens prefer end quote he said That is maximum level of privacy of Course this doesn't mean that the

Digital Euro will have the same level of Privacy as cash he added but certainly We'll guarantee the maximum level of Privacy Panetta also raised the Possibility that some transactions using The digital Euro could be made Anonymously well we are studying even Though the technology is not mature yet The possibility of having offline Payments that for limited value payments Could give people access to fully Anonymous payments Later in the session Panetta added that The ECB has neither the desire nor the Capabilities to keep track of each Person using the Central Bank issued Digital currency That sounds like a bold-faced lie to me Dude I mean throw a tinfoil hat on me And call me Sally but they most Certainly do I mean at this point like It's one of those things when you ask Chat GPT or that new chat well what's The new AI in Snapchat and you go do you Have my location and then it's like no I Don't have your location you're like Where's the closest ice cream store and It's like according to your location the Closest ice cream store is here it's Like we don't know your location but we Know your location we're just going to Disguise it under once again convenience Right and so it'll be this kind of thing Uh we don't know what Central Bank like

What's your Central Bank digital Currency wallet address is we don't have That attached to you but you want to get That tax return oh yeah we can do that Right away boom just directly into there Don't need to provide a dress or Anything Bing Bang Boom it's my new Favorite saying done right it's like we Don't have that capability to track it But you know When it's convenient for you we'll kind Of prove that we do only that's that's How I read it it's hilarious we have Proposed that there would be no Repository in which all of the Information on digital Euro users would Be stored it would be literally Impossible it'd be interesting I mean Like how would that be literally Impossible on a blockchain if you're Utilizing that it's fully transparent It's going to keep the Ledger somewhere So maybe yes they use some sort of Privacy features from Z snarks or Whatever it may be to implement into That but do you really want me to trust That they're going to actually Implement That or not right I just don't know that That's actually going to be the case a Decision has not yet been made on Whether the digital Euro would exist on Centralized or decentralized technology Panetta said that the architects of the Project should be able to remain as

Flexible as possible while working out What might be the best approach now That's going to be an interesting debate That take place I think over Central Bank digital currencies being on Centralized servers or on decentralized Servers I would assume that there will Be a certain amount of it that needs to Be on centralized servers so that there Can be you know basically some sort of Control over it to a certain extent if You move the full decentralized Path right which one would be more Secure I mean there's probably an Argument for decentralized currency to Be more secure than centralized currency Because if you have a centralized Basically entity running your Central Bank digital currency that probably Opens it up to easier tax from other Countries if you have a decentralized Central bank digital currency then I Think you probably make it more Difficult to attack provided it's proof Of work right and that's where another Kind of security layer and debate's Going to come in with Central Bank Digital currencies European Finance officials and lawmakers Have been grappling with the question of Privacy and the digital Euro since it Was first proposed earlier this year Finance Minister from across the Eurozone said privacy was a key

Dimension and fundamental right in the Development of a digital Euro but they Added that the project should comply With other objectives such as upholding Sanctions I guess you could do Geographic blocks Right Um upholding sanctions is an interesting One to basically go straight into right Because The entire problem that I think a Majority of countries have currently Especially in the west with Bitcoin and So on is that they have no control over The sanctioning of it right and that's Why we're going to move into Russia here And talking about them becoming a large Bitcoin miner and there the the ability To uphold sanctions But also uphold privacy seem to be Juxtaposed right like at the very least They're going to know from where you Connect to the the network from so that They can manage that and push it for Into one sanction or another right like If an IP is coming from Russia block it At the very least there will be some geo Location Technology going on here that will Invade your privacy I I just that's the Way it sounds to me and preventing money Laundering illicit financing and tax Evasion well what do they do if they're Trying to catch somebody that's evading

Taxes They track down the individual that owns That wallet so there would be something Put into place that would invade your Privacy as a user of the digital Euro I Mean it's basically like I said they Tell you one thing but they're gonna do Something completely different it's Nutty Married McGinnis the European Commissioner for financial services Echoed this sentiment last week in a Debate on the digital Euro saying there Was a delicate balance to be struck Between privacy and anti-money Laundering requirements the project is One of the many digital Finance Frontiers that the EU is confronting as It updates it rule its rules for the Modern world last week parliamentarians Passed a landmark set of regulations for Crypto service providers known as Mica Thanks for checking out this clip from The crypto mining show you can check out The full episode here or more crypto Content down here also I'd like you to Check out my locals page at son of a Tech.locals.com where you can become a Member for free or choose to be a five Dollar a month supporter that unlocks Additional content

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