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Joined 2 years ago
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Cake day: June 27th, 2024

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  • Imagine Digital Euro Wallets as bank accounts managed by ECB. Similar to Open Banking, ECB will design an API and will provide access by licensing PSPs. ECB will only use and save wallet identifiers, it will not log identity of wallet owners. PSPs will have to verify the identity of wallet owners - at minimum they need to check that wallet owners are EU citizens at the time when the wallet is created. PSPs of transaction sender and receiver will need to communicate, because they need to obtain sender’s and receiver’s wallet ID in order to initiate and verify the payment. Based on this, various scenarios are possible. The PSPs may keep wallet owner’s personal information. They may also exchange and log the personal information as part of a transaction. ECB will possibly require logging of some information as part of money laundering precautions and PSP that don’t do that won’t get a licence and API access.

    Apart from that, PSPs may wish to log information that goes beyond what they are legally required to. No doubt there will be initially lot of terrible consumer-unfriendly PSPs, mainly banks. Visa, MasterCard vor PayPal may also join as PSPs. But provided that ECB’s logging requirements aren’t too strict, privacy friendly PSPs will appear at some point.
















  • .6 is a multiplier. It’s a loss of 40 cent per Euro.

    There are numerous studies assessing the return on investment, but I wouldn’t say that some are more correct. They are working with different assumptions regarding the environmental costs, which can lead to huge differences in the cofficient estimates. Currently, the goal is to convince EU commission to include the environmental costs in their economic models. The precise math isn’t that important, it’s the step towards better models that matters. The study by Trinomics is part of this effort and shouldnt be discarded, even though it comes from industry and though it claims large multipliers.


  • Unsure,what is crappy or unsound corpo bullshit because the economic models used by EU to allocate resources and to drive fiscal decisions are even less complex than those proposed by the scientific community, because they ignore climate change.

    Rule of thumb: direct investments from government have a multiplier ratio roughly between 1 & 5 depending on the economic situation.

    EU Commisions economic models currently assume that every Euro of investment generates just 0.6 Euro of economic activity. Renewable energy projects are the only investments with coefficients above 1. Source





  • They connect to Visa’s server which authenticates the transaction. They’re the network in the middle of the system that everyone else connects to. The banks just provide the account to transact from.

    That’s incorrect. Using push-up messages, the authentication is done in bank’s authentication app. If using SMS authentication, the SMS with code is sent and signed by bank. Visa and co. provide a bit of infrastructure and the messages between the processor and customer’s bank travel through their network, but this step is not essential for the transaction. For instance, processor could directly communicate with customer’s bank through ECB’s open banking API.

    Then how is this new Digital Euro supposed to do NFC transactions if they can’t use the NFC?

    Through regulatory effort. As part of WERO initiative it is already being discussed how EU will force Apple and Google to open their NFC chip. Visa and co. may piggy-back on that effort, but crucially, the regulation will be designed to facilitate implementation and adoption of WERO and of D€ and not the use and adoption of debit cards.



  • That’s the confusion. I’m only talking about technology.

    You’re contradicting yourself. Visa and co. don’t own technology. As you wrote, the implementation is left to banks and financial providers. You need to decide whether you want to discuss banks’ software implementation or the schemes designed by Visa and co.

    That could be done by just making a new NFC wallet app

    You can’t just build an app that uses NFC, like you build an app that uses a phone camera. You need special agreements with Apple (or Google) to access their NFC chip. Visa and co. don’t have such agreements which makes their schemes limited and unattractive compared to D€.