I don’t know if it’s different in Europe, but where I live bank savings account interest has been so low as to be a joke my entire adult life. If your goal is to have an investment or even just beat inflation, a bank account ain’t it.
It’s not high exactly but here in the UK you basically can’t beat compound interest in returns and predictability over time. The alternatives are investing in businesses of which none succeed or really grow and has a high barrier to entry or the gambling with 4x leverage CFDs which is closer to horse betting than any kind of investment strategy.
The digital euro doesn’t stop you from keeping doing it. It only replaces cash. Instead of withdrawing cash from the ATM to keep it in your wallet, you withdraw digital cash and keep it in your phone.
True, but that would be a phone app which has to come from an official (US) app store on a phone that is using offical (US) firmware…
I’m all for having a financial system that we can use 100% disconnected from the US, but it’s the details that makes this hard, not the initial concept of e-Money.
But, back to the original point, I don’t know how interest would work on money in an eWallet. I’d want to keep all my funds earning for me, which means loaning to others and then getting something back… so I don’t want those transactions sitting in a 0% “safe” place… I’m either saving or spending.
So, if we can just have a EU version of Visa / Mastercard as step 1 that would be best. I think that’s just arriving…
But isn’t the bank lending out your money and charging interest… which they pay back (some) to you?
If that doesn’t happen and the digital euro just sits under your bed, then how do savings work vs inflation?
I don’t know if it’s different in Europe, but where I live bank savings account interest has been so low as to be a joke my entire adult life. If your goal is to have an investment or even just beat inflation, a bank account ain’t it.
It’s not high exactly but here in the UK you basically can’t beat compound interest in returns and predictability over time. The alternatives are investing in businesses of which none succeed or really grow and has a high barrier to entry or the gambling with 4x leverage CFDs which is closer to horse betting than any kind of investment strategy.
The digital euro doesn’t stop you from keeping doing it. It only replaces cash. Instead of withdrawing cash from the ATM to keep it in your wallet, you withdraw digital cash and keep it in your phone.
True, but that would be a phone app which has to come from an official (US) app store on a phone that is using offical (US) firmware…
I’m all for having a financial system that we can use 100% disconnected from the US, but it’s the details that makes this hard, not the initial concept of e-Money.
But, back to the original point, I don’t know how interest would work on money in an eWallet. I’d want to keep all my funds earning for me, which means loaning to others and then getting something back… so I don’t want those transactions sitting in a 0% “safe” place… I’m either saving or spending.
So, if we can just have a EU version of Visa / Mastercard as step 1 that would be best. I think that’s just arriving…