๐ฑ๐จ๐๐ก๐ ๐๐ข๐ ๐ข๐ญ๐๐ฅ ๐๐ฎ๐ซ๐จ ๐๐ข๐ฅ๐๐ฆ๐ฆ๐: ๐๐จ๐ฐ๐๐ซ ๐๐ฎ๐ญ๐๐ ๐ ๐๐ฑ๐ฉ๐จ๐ฌ๐๐ฌ ๐ข๐ญ๐ฌ ๐๐ฎ๐ฅ๐ง๐๐ซ๐๐๐ข๐ฅ๐ข๐ญ๐ข๐๐ฌ๐ฅโ
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 โฌ15 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 cashโlimiting large cash transactionsโalso 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 euroโs future, rekindling peopleโs 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.
