The future of money will be digital. The European Central Bank announced the introduction of an E-Euro. An interview with Dr. Peter Riedi of EM Global Service AG and the question: what are the forecasts on this topic?
The European Central Bank (ECB) already held talks last year about the introduction of a digital euro, the so-called e-euro. It is now clear, however, that this will be issued in parallel with cash and that cash will explicitly not be replaced by the e-euro. The President of the ECB, Christine Lagarde, confirmed in January 2021 that preparations were already in full swing. Like Bitcoin, the digital euro is based on the concept of blockchain technology; the key difference between the two currencies is that the e-euro is under the supervision of the ECB and can therefore be centrally regulated. Similar to other cryptocurrencies, the E-Euro is stored in a so-called wallet.
Simplifying payment transactions and making them more secure
Even though cash is explicitly not to be abolished but supplemented, according to information from the ECB, the question remains for how long this will be the case. Scholars emphasize that a cash revolution can only take place in several stages, so it can be assumed that the introduction of the e-euro will first scale the opportunities and risks of a single cryptocurrency for the eurozone and then weigh whether the risks can be managed. If so, it is possible that cash will be used minimally in just a few years and that even ATMs may prove to be superfluous and eventually be abolished.
EM Global Service AG – Background and opinions
Regardless of effective and secure methods of organizing payment flows, the challenge of investing assets remains. Of course, EM Global Service AG will offer its metal customers the possibility to pay with digital money. EM Global Service AG offers precious metals (gold, silver, platinum, palladium) for single purchase and subscription purchase. The storage takes place, in the name of the customer, in a duty-free vault warehouse in Liechtenstein. The precious metals can all be purchased VAT-free.
Efficiency gains in payment transactions boost the economy and help owners of metals
The megatrends speak for commodities GOLD – SILVER – PLATIN – PALLADIUM. Dr. Peter Riedi: „All precious metals are physically acquired and held in custody. The precious metals are stored in a high security vault facility of a Swiss or Liechtenstein security company. Due to population growth and the growth of buyers with purchasing power in global terms as well as economic growth, there is a significant shortage. Values continue to rise due to sustainable management and high hurdles for procurement (environmental and economic).“
Market outlook and new trends
In the current environment, with cash being printed in staggering amounts around the world, the issue of scarcity remains central. This makes precious metals particularly interesting. One can believe in the demise of the monetary system or not but take it for granted that its „maintenance“ will be accompanied by a permanent and massive demonetization. Precious metal investments remain in many respects one of the few possibilities to escape this trend and to secure the own fortune in the long term.
Add to this the fact that after years of weak prices, many mine operators have not been able to invest. Some unprofitable mines were also closed. It takes years to develop new deposits, if they are found at all. For white metals, there have been considerable problems in recent years. Production is too low for current demand, and completely inadequate for growing demand. This will continue to affect prices for some time.
Dr. Peter Riedi
Economist & Precious Metals Expert
The author is responsible for the content.
EM Global Service AG
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Principality of Liechtenstein
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Located in the heart of Europe, EM Global Service AG designs and manages commodity and precious metal concepts. The range of services of EM Global Service AG includes the acquisition, custody and security of physical precious metals for the owners, the buyers. The company with her team builds on economic stability and secure it with reliability and discretion in asset custody in the heart of Europe. For more information, visit www.em-global-service.li