Digital Euro Podcast: Recent Episodes
Digital Euro Association e.V.
The DEA Podcast was brought to life by the Digital Euro Association and deals with digital money, specifically CBDCs and stablecoins with a focus on different forms of a digital euro.
The Digital Euro Association, as the largest European Think Tank dealing with digital money, is dedicated to educating people on the tokenization of money. In addition to that, the DEA assists in solving the immense challenge of creating an innovative and open environment for digital tokenized money in the eurozone and its 19 member states. Through shared knowledge and collaboration of the DEA community members, with backgrounds in a wide range of industries, we strive to significantly contribute to the development of the digital euro.
On the basis of this interdisciplinarity, it is possible to develop solutions jointly and, under consideration of all interests, to formulate the necessary requirements for politics and the financial sector. In this way, the DEA hopes to offer every citizen, entrepreneur, (central) banker, and politician a platform that helps to understand the enormous impact of the digitization of money on the economy and to define design principles of differing forms of a digital euro.
In this episode, Valentin Seehausen talks with Jannah Patchay about the fungibility and interoperability of CBDC.
Jannah works for the Digital Pound Foundation and is specialized in financial markets innovation, and in helping firms to define, develop and execute their commercial strategies in a highly regulated environment. Her passion lies in building the capital markets of the future, harnessing emerging technology to create new and innovative financial services and products that can promote wider social benefit and greater access to financial services.
In this episode, Valentin Seehausen talks with Franklin Noll about Stablecoins, Synthetic CBDC, and the general history of cryptocurrencies. Noll Historical Consulting assists clients in succeeding in the cryptocurrency, monetary, and payments fields by providing inside knowledge of those worlds and by providing the expertise needed to develop and promote successful projects.
Focusing on the technology of money, past, present, and future, Noll Historical Consulting helps those working with banknotes, stablecoins, Central Bank Digital Currencies, and more. Just some of the services available are shown below.
Central banks around the world have stepped in and intensified their efforts to conceptualize and design their own digital currencies, i.e., central bank digital currencies (CBDCs), in particular, as a reaction to the increased competitive dynamics by the cryptocurrencies and stablecoins. Asia has a particular importance and critical leading efforts in this space with various Asian central banks assessing and experimenting with CBDCs. For instance, China has launched pilot programs and trials of its digital currency project e-CNY. Goals of the e-CNY include to provide a convenient, yet more efficient, resilient and secure retail payment system to increase financial inclusion and preserve monetary sovereignty. Further, fair competition and interoperability should be promoted. As another example, the Bank of Japan is in the proof of concept stage regarding their own digital currency. Additionally, the Japan Digital Currency Forum as a consortium of around 70 Japanese firms, including the country's three largest banks, is also working on a yen-based digital currency, tentatively called "DCJPY" for Japan's private sector to complement the central bank's efforts.
In this episode of the DEA Podcast, Manuel Klein interviews Miguel Fernandez Ordoñez, the former president of the Spanish central bank. They discuss why Miguel believes that we need new forms of money, and what these new forms of money bring with them economically. Miguel also explains, which role he foresees for the state, central banks, commercial banks, and other non-banking institutions, e.g. Stablecoin-providers in this new world, in which CBDC plays a larger role.
Be sure to tune in to learn arguments for a system, in which CBDC or 100% backed Stablecoins become the dominant form of money in the money supply and what effects this shift might have on the economy and banks.
In this episode of the Digital Euro Podcast, DEA Executive Director Conrad Kraft sits down with Dr. Cyrus de la Rubia to discuss the role of commercial banks amidst CBDC implementation. They run through the current roles of commercial banks and how these may be impacted by the introduction of various types of CBDCs.
Enjoy!
In this podcast episode of the Digital Euro Podcast, James Wallis, VP for Central Bank Engagements and Antony Welfare, European CBDC lead at Ripple, talk to Manuel Klein, founding member of the DEA about Ripple's engagement in CBDCs.
James and Antony give an overview of what Ripple does and what the underlying blockchain technology, the XRP Ledger (XRPL), is used for. They describe how Ripple partnered with the Central Bank of Bhutan to build a pilot for their CBDC and what role the XRPL could play in a future of multiple CBDCs running on different technologies. James and Antony also discuss the use cases of a CBDC and give an outlook into the future and how digital payments will play a fundamental role in it.
We at DEA want to thank Ripple for their support of the DEA.
If you want to learn more about Ripple, make sure to visit their website (https://ripple.com/) and read their “Future of CBDCs report” https://ripple.com/wp-content/uploads/2021/01/cbdc-wp-2020.pdf
Bitcoin rose from the ashes of the global financial crisis of 2007-08 as the first cryptocurrency to attract global attention. With the rise of peer-to-peer electronic cash systems that do not rely on intermediaries, there are more than 7,500 cryptocurrencies in circulation now, according to Statista. Some first businesses accept major cryptocurrencies as payment today. All these developments lead to the questions such as, whether cryptocurrencies are actually money, and whether they are good investment or store of value tools with their high volatility issue.
The cost of low stability in cryptocurrency values increased the importance of (fiat-backed) stablecoins, which are cryptocurrencies backed by real-world assets such as commodities, fiat currency (issued by the government), gold, or other cryptocurrencies. Investors can safeguard themselves against the volatility in cryptocurrencies by investing in stablecoins, which may also serve as a store of value.
Increased competition from these novel forms of primarily private sector-issued money such as cryptocurrencies and stablecoins with the declining use of cash as a means of payment lead most of the central banks around the world to consider issuing their own central bank digital currency (CBDC). The European Central Bank (ECB) is also looking into the possibility of introducing a CBDC for the Euro Area, the digital euro. Therefore, a digital euro might become reality in a few years.
In this episode of the DEA Podcast, DEA Board Member Valentin Seehausen discussed with Cizar Brahim, Chief Strategy Officer at Sovereign Wallet, the technical requirements of a CBDC infrastructure blockchain. Moreover, they talk about the advancements of SWN in CBDC pilot research. Enjoy the episode!
In this episode of the DEA Podcast, DEA Chairman Jonas Gross discussed with Sven Marsing, Head of Project & Service Management at the Bundesdruckerei, the role of digital identities for the digital euro. They talk about the work of the Bundesdruckerei in this context, and why a digital identity is crucial for a digital euro. Enjoy the episode!
Digitization of financial assets promises tremendous benefits to the capital markets, such as executing fast, efficient, and secure transactions via distributed ledger technologies (DLTs). First financial institutions across the globe look for opportunities to integrate blockchain technology into their security offerings, such as blockchain-based bonds. The World Bank pioneered by issuing a new blockchain-based debt instrument and launched its bond-i already back in August 2018. Today, digital assets are already allowed by the regulator, e.g., in Germany, and will thrive over the next years.
The advantages of digital assets become particularly clear when not only the digital asset itself, but also the payment/settlement of the digital asset is observed. When digital assets are based on DLTs, not only buying and selling the bond via a DLT is possible, but also the payment of the bond - both on the same platform. This allows for instantaneous settlement of assets.
One promising way for digital assets is to settle in central bank money, via a wholesale central bank digital currency (CBDC). While the first central bank pioneered wholesale CBDCs, the Austrian Central Bank has recently conducted a research project for settling a digital asset with central bank money. In their DELPHI (Delivery vs. Payment Hybrid Initiative) project, appropriateness of blockchain technology for issuing and settling digital bonds in real time using a wholesale CBDC was explored. The Austrian Central Bank issued a wholesale CBDC that was used to pay for the digital bond. Potential deliveries of this blockchain-based project are to assess the compatibility of the current legal framework and its various amendment needs and to evaluate the applicability of this project learnings to the market needs.
In this final episode of the DEA Podcast for 2021, DEA Board Chairman Jonas Gross together with Conrad Kraft (Executive Director of the DEA) and Manuel Klein (Founding Member of the DEA) recap some of the most important developments made at the DEA as well as review some of the interesting developments in the world of digital money and the digital euro. They also share their predictions and outlook for 2022 in the world of digital money.
Be sure to tune in to get a great overview of the year that was and insights into what 2022 may hold.
In this podcast episode, Valentin Seehausen, COO of the DEA, interviews Dr. Kimmo Soramäki from FNA. FNA builds models that are based on agent-based modelling (ABM) and consults central banks from all over the world. Valentin and Kimmo discuss how the ABM approach differs from models that central banks have been using in the last decades. They focus on the CBDC simulator, an ABM model that can simulate the effects that different parameters of a CBDC could have on the economy.
This podcast episode of the Future of Money Podcast by the Digital Euro Association focusses on Stablecoins. DEA founding member Manuel Klein talks with Markus Franke, Partner and economist at cLabs who work on Celo stablecoins, about what stablecoins are, which different types of stablecoins exist and which advantages and disadvantages the different types of stablecoins bring. After having described the different stablecoin-types, Manuel and Markus focus on the decentralized stablecoins of celo: Celo is a layer 1 blockchain with stablecoins like the Celo Dollar and Celo Euro that are optimised for decentralised finance applications on cell phones. Manuel and Markus discuss how the decentralized celo Stablecoins differ from centralized stablecoins and how they are issued, backed and redeemed. Last but not least, Markus explains how celo is aiming to become environmentally sustainable money and which use cases the members of the celo alliance for prosperity work on. Make sure to listen to this very insightful episode on a promising form of the private digital euro: the decentralized stablecoins of celo.
In this episode, Tony McLaughlin outlines a network on which different forms of money that we already know today can be transferred as tokens issued on distributed ledgers. These different monies are all “regulated liabilities” and include commercial bank money, electronic money, and central bank money. A network that tokenizes regulated liabilities on the same chain may deliver a next generation digital money format with the benefits of DLT but without the downsides of currently discussed digital money forms such as stablecoins or CBDCs.
As DLT has the potential to represent multiple forms of digital value, we might go further and envision the creation of networks that tokenize regulated liabilities and regulated assets on the same chain. Such a network would be significantly different from today’s siloed financial architecture: It would embody all types of tokenized assets and money in an ‘always on’, programmable and global network — a regulated internet of value.
Most of the central banks around the world consider issuing a CBDC mainly as a consequence of the declining use of cash as a means of payment and to position themselves against increased competition from novel forms of private sector-issued money such as cryptocurrencies and stablecoins. In most jurisdictions, CBDC design requirements and design principles are currently being analyzed and discussed. A consultation by the European Central Bank (ECB) revealed that privacy seems to be the most important requirement for a CBDC for European citizens. Privacy of transaction data is important for ensuring the security of the data and fair pricing, and avoiding data exploitation, amongst others. Therefore, a high degree of data privacy while complying with regulations such as anti-money laundering and combating the financing of terrorism seems to be desirable for a CBDC.
Digital payment solutions constitute an important strategic building block in Europe’s quest for digital competitiveness and strategic autonomy. Various European institutions have increased their efforts to modernize the payment infrastructures in Europe, including the Digital Finance Package by the European Commission and the inquiry into a digital euro by the European Central Bank (ECB). However, in particular, the private sector is at the forefront of analyzing the impact of a digital Euro, e.g., in this context, a digital euro based on distributed ledger technology (DLT).
oday, cross-border payment systems are far from being frictionless and efficient. According to data by the World Bank, for cross-border payments, on average, more than 7% transaction fees are charged. Central bank digital currencies (CBDCs) have the potential to improve these international payment processes in various ways. At this point, standardization, harmonization and interoperability between domestic payment systems with possible different payment arrangements become strikingly important. A committed cooperation to build a bridge between multi-currency cross-border payments through an enhanced financial infrastructure with the design principles supporting privacy, security, fairness, efficiency, inclusivity, and legal compliance would bring about a promising solution. Additionally, international implications of CBDCs need to be further studied as CBDCs could impact exchange rates, international capital flows, and, in general, also the supremacy of specific currencies.
The Digital Euro Association (DEA) webinar series “private sector and the digital euro” will continue with a webinar on stablecoins. As of the end of May 2021, stablecoin supply exceeds $100 billion in market value according to data from The Block. This substantial development in the stablecoin market is primarily driven by the significant global demand for digital assets in the Decentralized Finance (DeFi) space. While stablecoins are in the spotlight, debates around their stability, resiliency, risk, and compliance with existing regulations in financial markets are currently being shaped. However, the stablecoin market is dominated by US stablecoin providers – euro stablecoins lag behind. Further, as central banks consider issuing their own digital currencies – central bank digital currencies (CBDCs) – dynamics and interlinkages between stablecoins and CBDCs are now remarkably explored
In this Episode, we focus on the digital euro project and address the following questions:
Do we need a digital Euro? If yes, why? What are the use cases of a digital Euro? Which role should the private sector play? What could be a timeline for the ECB to issue a CBDC? How advanced is the ECB in the development of a digital Euro? When should we expect to see a Euro-CBDC? What are the consequences of delayed action by the ECB?
In a four-part podcast series, Alexander Bechtel and Manuel Klein explain how the euro can be "digitized", which different forms the digital euro can take, and what hurdles must be overcome to make the digital euro a reality. The last episode focuses on the reasons for a digital Euro.
In a four-part podcast series, Alexander Bechtel and Manuel Klein explain how the euro can be "digitized", which different forms the digital euro can take, and what hurdles must be overcome to make the digital euro a reality. The third episode focuses on private forms of the digital Euro.
In a four-part podcast series, Alexander Bechtel and Manuel Klein explain how the euro can be "digitized", which different forms the digital euro can take, and what hurdles must be overcome to make the digital euro a reality. The second episode focuses on central bank digital currencies (CBDC).
In a four-part podcast series, Alexander Bechtel and Manuel Klein explain how the euro can be "digitized", which different forms the digital euro can take, and what hurdles must be overcome to make the digital euro a reality. The first episode focuses on the existing money system.
We introduce our Podcast on the programmable, digital Euro established by the Digital Euro Association.