PowerOutage

😱🚨𝐓𝐡𝐞 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐄𝐮𝐫𝐨 𝐃𝐢𝐥𝐞𝐦𝐦𝐚: 𝐏𝐨𝐰𝐞𝐫 𝐎𝐮𝐭𝐚𝐠𝐞 𝐄𝐱𝐩𝐨𝐬𝐞𝐬 𝐢𝐭𝐬 𝐕𝐮𝐥𝐧𝐞𝐫𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬💥❗

The massive power outage that hit Spain and Portugal revealed a significant flaw in the idea of a digital euro. With phone and internet signals down, people faced a major problem: card machines failed, and ATMs went offline. Those with cash were fine, but many others relying on digital payments found themselves in a bind. My wife, Maddie, was in Madrid during the blackout and experienced this first-hand. She had €15 in her wallet, no internet, and couldn't access her flight or transport options.

While the European Central Bank claims the digital euro will support offline payments for privacy, the blackout demonstrated how it would fail if devices can't function due to a lack of electricity. Spain's increasing crackdown on cash—limiting large cash transactions—also highlights the issue. A central bank digital currency (CBDC) might have exacerbated the situation, especially as a recent poll shows only 45% of people would be willing to use it.

This blackout may have dealt a significant blow to the digital euro’s future, rekindling people’s appreciation for cash, which had declined during the pandemic. It also raises concerns for crypto and fintech firms, as stablecoins would face the same risks during power outages. Bitcoin, however, remains largely unaffected by such events due to its role as a store of value.

With power restored in Madrid, consumers are likely reconsidering their preferences for cash and questioning the push for a digital euro.

#DigitalEuro #PowerOutage #CashIsKing #CBDBlues