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We don’t need to speculate how this will work. India, with a population 3 times the size of the EU already did this more than half a decade ago. And it works

We don’t need to speculate how this will work. India, with a population 3 times the size of the EU already did this more than half a decade ago. And it works brilliantly.

jeroenhd 10mo ago
I don't believe the Indian system works based on cryptocurrency, so I don't think the same expectations can be held. The concept is hardly revolutionary within Europe, though. Back in 1996, the Dutch "ChipKnip" was introduced, where you could store a small amount of money directly on a bank card so payment terminals wouldn't need permanent internet access to process payments. This was abandoned when wireless payment technologies were introduced, but the concept has been around for decades. Like so many fine-working systems, this system only worked within one country. The EU is now trying to solve this problem for every member country, which means convincing banks and financial institutions that whatever reasoning blocked their participation in earlier non-American systems are now no longer a problem.
- danaris 10mo ago
  ...And where does it indicate that this "digital euro" will be based on cryptocurrency? Nothing in the article appears to suggest that.
  - ffsm8 10mo ago
    https://www.ecb.europa.eu/euro/digital_euro/html/index.en.html https://www.ecb.europa.eu/euro/digital_euro/html/index.en.ht... They explicitly differentiate themselves from crypto assets, and the only party issuing them seems to be European Central Bank. Doesn't sound like crypto to me either
flowerthoughts 10mo ago
Sweden, a counntry in the EU, did this in 2012. Then they introduced a (small) fee. Apparently Norway's Vipps is free for small amounts, but charges 1% for large. Too tempting for the EU not to play, but that will replace a duopoly with a monopoly, which will end up doing what monopolies have always done. "For the greater good" here is to incentivize competition.
- bergie 10mo ago
  For travelers, this Balkanization of payment mechanisms is quite a hassle. You can't have Swish (the Swedish payment system) without a Swedish bank account. You can't have Yappy (the payment system used in Panama) without a Panamanian phone number. So as a foreigner you simply can't pay. Especially in Sweden where cash isn't a thing.
- boruto 10mo ago
  I think the parent comment is referring to RuPay à la visa/mastercard not Vipps which I say is equivalent of UPI. Although UPI is open unlike Vipps.

We don’t need to speculate how this will work. India, with a population 3 times the size of the EU already did this more than half a decade ago. And it works brilliantly.

jeroenhd 10mo ago

I don't believe the Indian system works based on cryptocurrency, so I don't think the same expectations can be held. The concept is hardly revolutionary within Europe, though. Back in 1996, the Dutch "ChipKnip" was introduced, where you could store a small amount of money directly on a bank card so payment terminals wouldn't need permanent internet access to process payments. This was abandoned when wireless payment technologies were introduced, but the concept has been around for decades. Like so many fine-working systems, this system only worked within one country. The EU is now trying to solve this problem for every member country, which means convincing banks and financial institutions that whatever reasoning blocked their participation in earlier non-American systems are now no longer a problem.

danaris 10mo ago
...And where does it indicate that this "digital euro" will be based on cryptocurrency? Nothing in the article appears to suggest that.
- ffsm8 10mo ago
  https://www.ecb.europa.eu/euro/digital_euro/html/index.en.html https://www.ecb.europa.eu/euro/digital_euro/html/index.en.ht... They explicitly differentiate themselves from crypto assets, and the only party issuing them seems to be European Central Bank. Doesn't sound like crypto to me either

flowerthoughts 10mo ago

Sweden, a counntry in the EU, did this in 2012. Then they introduced a (small) fee. Apparently Norway's Vipps is free for small amounts, but charges 1% for large. Too tempting for the EU not to play, but that will replace a duopoly with a monopoly, which will end up doing what monopolies have always done. "For the greater good" here is to incentivize competition.

bergie 10mo ago
For travelers, this Balkanization of payment mechanisms is quite a hassle. You can't have Swish (the Swedish payment system) without a Swedish bank account. You can't have Yappy (the payment system used in Panama) without a Panamanian phone number. So as a foreigner you simply can't pay. Especially in Sweden where cash isn't a thing.
boruto 10mo ago
I think the parent comment is referring to RuPay à la visa/mastercard not Vipps which I say is equivalent of UPI. Although UPI is open unlike Vipps.