This is a placeholder for @euro WG work on digital euro and ID.
introduction
The Digital Euro Package is a proposal from the European Commission to protect the use of cash and enable digital euro for online and offline payments. This document provides an overview of the EC proposal from a privacy and technical standpoint. Further work on this topic is being prepared by the EDRi network.
Concepts
Public and Private Money
There are two types of money: public and private.
Wholesale and Retail Money
Wholesale money refers to the large sums of money lent by financial institutions in the money markets. This wholesale banking encompasses the market for tradable securities, such as Treasury bills, commercial paper, bankers’ acceptances, foreign or brokered deposits, certificates of deposit, bills of exchange, repo agreements, federal funds, and short-lived mortgage and asset-backed securities. souce Investopedia
Fiat Cash and Digital Cash
EC Proposal
Overview
Issues
Account-based retail money is an implementation nightmare for everyone
- Waterfall thing is crazy
Privacy issues
- account-based proposal is contradictory to privacy
Licensing issues
- Proprietary solutions mean:
- dependency on private sector
- security by obscurity
Security issues
- Liability of offline transactions