“A Digital Euro must bring benefits for workers and citizens” – Chris MacManus MEP

MacManus also stated that the digital euro “should not be a replacement for cash”

Sinn Féin MEP Chris MacManus, a member of the EU Parliament’s Economic and Monetary Affairs Committee, has said the move by the ECB to take the next step in launching a “digital euro” must be done to in order to empower citizens and workers and not the banks.  He added it should not be a replacement for cash.

MacManus said:

“The ECB has effectively announced the start of a process which will see the launch of the “Digital Euro” in the coming years. This must be a process whose endpoint is the empowerment of workers and citizens. There must be a democratic step forward in how our economy works, with the power of the banks over workers and families diminished and technology put to use in levelling the playing field between workers and financial institutions. This should be the yardstick by which we measure whether a digital euro is desirable.”

“I have already raised with the ECB the fact that the Digital Euro must not replace cash as an option and am glad that President Lagarde responded that they were in agreement with me on this point. We must remain vigilant that there is no slippage on this point.”

“The ECB are mainly acting in response to the threat of cryptocurrencies especially so-called Stablecoins that private companies like Facebook are working on. Money should not be privatised, and huge corporations allowed take the place of public institutions that are at least in some way accountable to the people.”

The Sinn Féin MEP highlighted potential pitfalls, “It is not just a matter of consumer protection or even of criminality but a very real threat to the tax base and the stability of the economy. We know the extent to which criminality and speculation make up so much of the crypto activity and we also know how unequal the crypto economy is. Bitcoin, for example, is said to be as unequal as North Korea.”

“However there must be a better reason than trying to keep up with Facebook or Bitcoin or the next so-called stablecoin to launch a Digital Euro.”

The Midlands Northwest MEP concluded, “Over the coming months and years the shape and form of a Digital Euro will be decided. The interests of workers and citizens must be represented in these debates, or we risk ending with up with just another crutch for banks and middle-men.”  ENDS