Bitcoin bull Anthony Pompliano shares his thoughts on the digital euro, reminding everyone that it will not be decentralized and signaling a change in monetary policy.

Anthony Pompliano shares his thoughts on the digital euro and says it is not Bitcoin

This week the European Central Bank (ECB) announced that it has started investigating a digital euro. They added that they have not yet decided whether to introduce it:

“In July 2021 we decided to start a digital euro project. That does not mean that we will necessarily spend a digital euro, but we are ready to spend it. “

However, Pompliano predicts that the adoption of a central bank digital currency (CBDC) will be inevitable. This issue then begs the question of whether the authorities will stamp out competition. Some claim that a crypto crackdown has begun.

The ECB sees the digital euro as the natural evolution of money in the digital age. At the same time, they say that it offers a safe and reliable means of payment.

“In this new era, the digital euro will ensure that the citizens of the euro area have free access to a simple, widely accepted and secure means of payment. Safe and reliable.”

Interestingly, the ECB says the digital euro will serve as a complement to cash. That is, they intend to operate digital currency in conjunction with cash.

In addition, a digital euro will increase financial stability and increase currency sovereignty as it reduces reliance on other digital payment methods.

An important point of CBDC is financial privacy or the lack of it in a centrally controlled system. But the ECB has tried to reassure people by saying that privacy is a priority for them.

In response to the ECB’s plans, Pompliano made it clear that despite the authorities’ claims, CBDCs are the opposite of cryptocurrencies like Bitcoin.

“The problem with that is that when they talk about the digital euro, they always like to fall back on the pegs of real cryptocurrencies like Bitcoin, right? They always wanted to present it as if it were decentralized or had an advantage. “

Pomp added that the CBDC will not usher in a new era of monetary education. Instead, it will be more of a reckless monetary policy, but with a new “form factor”.

Nothing changes in monetary policy. They will still make trillions of dollars, they will still devalue currencies, they will still manipulate interest rates, etc. They are just changing the form factor of technology. “

In terms of financial privacy, Pompliano added a control system that allows governments to determine when and where users can spend money. He thinks this is a terrifying prospect.

“Today in China, where the government is more authoritarian, you don’t drive enough and you can’t take a taxi or Uber. That’s right? What if we have full government surveillance capabilities? It’s scary as hell. “

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