The Digital Euro and Why Stable Coins Matter
03/08/22 • 48 min
Nobody knows what a digital euro will look like. ECB is in the process of exploring the possibility. Philipp Sandner, Blockchain Expert
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China is with its digital Yuan ahead of Europe or the US. The ECB is investigating the possibility, with the aim of having a digital Euro 2025. We will see China launching the digital Yuan this year. That is almost 5 years ahead.Philipp Sandner, Blockchain Expert
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CBDC is a variant how the Euro will run on a modern infrastructure.Philipp Sandner, Blockchain Expert
The Expert
This interview is part of our series with subject matter experts. Our guest today is Philipp Sandner (https://www.linkedin.com/in/philippsandner/), Professor at Frankfurt School of Management and Finance. There he is head of the Blockchain Center. He is also a member of the fintech advisory council to the German federal government (FinTechRat), Chairman of the International Toke Association, as well as a contributor to Forbes (https://www.forbes.com/sites/philippsandner/). According to one of Germany’s largest newspapers Frankfurt Allgemeine Zeitung (FAZ), Philipp is also one of the 30 most influential economists in the German-speaking area in their ranking for 2018 and 2019. He is also co-founder of the German Blockchain Association.
- LinkedIn https://www.linkedin.com/in/philippsandner/
- Twitter https://twitter.com/philippsandner
- Wiki https://de.wikipedia.org/wiki/Philipp_Sandner
The situation of the Federal Reserve in developing a digital central bank Dollar is like the ECB. Both are early in exploring the topic. Philipp Sandner, Blockchain Expert
The Digital Euro
Central banks take inspiration from cryptocurrencies and are actively thinking about introducing their own cryptos, called central bank digital currency (CBDC). There are many podcasts out there talking about CBDC, especially US$, but Startuprad.io is headquartered in the city of the Euro, Frankfurt. So, we thought we shed some light on the perspective from Europe. The European Central Bank and the Federal Reserve are both in the first steps of exploring the possibilities and implications of CBDCs for the Euro and the US Dollar. But there is already a growing market in US$ stable coins, where stable coins in Euro have to stomach losses, due to the negative interest rates in the European Monetary Union (EMU). Tune in to learn more...
The difference in the US is that there is already a working alternative, the US$ stable coins. Philipp Sandner, Blockchain Expert
Further Readings / Additional Resources
- Here is the link to the blockchain master program of Frankfurt School https://www.frankfurt-school.de/home/programmes/master/blockchain-digital-assets
- The central bank digital currency tracker of the Atlantic Council: https://www.atlanticcouncil.org/cbdctracker/
- CBDC definition https://www.investopedia.com/terms/c/central-bank-digital-currency-cbdc.asp
- Definition legal tender https://www.investopedia.com/terms/l/legal-tender.asp
- Swift https://de.wikipedia.org/wiki/SWIFT
- Bhutan https://en.wikipedia.org/wiki/Bhutan
- Stable coin https://en.wikipedia.org/wiki/Stablecoin
- Tether coins https://en.wikipedia.org/wiki/Tether_(cryptocurrency)
- Lender of last resort https://www.ecb.europa.eu/ecb/educational/explainers/tell-me-more/html/what-is-a-lender-of-last-resort....
Nobody knows what a digital euro will look like. ECB is in the process of exploring the possibility. Philipp Sandner, Blockchain Expert
Subscribe Here
Find all options to subscribe to our newsletter, podcast, YouTube channel or listen to our internet radio station here: Link https://linktr.ee/startupradio
China is with its digital Yuan ahead of Europe or the US. The ECB is investigating the possibility, with the aim of having a digital Euro 2025. We will see China launching the digital Yuan this year. That is almost 5 years ahead.Philipp Sandner, Blockchain Expert
Our Sponsor Startupraven
The best way to identify investors and cooperation partners for early-stage startups. Sign up for early access here: https://startupraven.com/
CBDC is a variant how the Euro will run on a modern infrastructure.Philipp Sandner, Blockchain Expert
The Expert
This interview is part of our series with subject matter experts. Our guest today is Philipp Sandner (https://www.linkedin.com/in/philippsandner/), Professor at Frankfurt School of Management and Finance. There he is head of the Blockchain Center. He is also a member of the fintech advisory council to the German federal government (FinTechRat), Chairman of the International Toke Association, as well as a contributor to Forbes (https://www.forbes.com/sites/philippsandner/). According to one of Germany’s largest newspapers Frankfurt Allgemeine Zeitung (FAZ), Philipp is also one of the 30 most influential economists in the German-speaking area in their ranking for 2018 and 2019. He is also co-founder of the German Blockchain Association.
- LinkedIn https://www.linkedin.com/in/philippsandner/
- Twitter https://twitter.com/philippsandner
- Wiki https://de.wikipedia.org/wiki/Philipp_Sandner
The situation of the Federal Reserve in developing a digital central bank Dollar is like the ECB. Both are early in exploring the topic. Philipp Sandner, Blockchain Expert
The Digital Euro
Central banks take inspiration from cryptocurrencies and are actively thinking about introducing their own cryptos, called central bank digital currency (CBDC). There are many podcasts out there talking about CBDC, especially US$, but Startuprad.io is headquartered in the city of the Euro, Frankfurt. So, we thought we shed some light on the perspective from Europe. The European Central Bank and the Federal Reserve are both in the first steps of exploring the possibilities and implications of CBDCs for the Euro and the US Dollar. But there is already a growing market in US$ stable coins, where stable coins in Euro have to stomach losses, due to the negative interest rates in the European Monetary Union (EMU). Tune in to learn more...
The difference in the US is that there is already a working alternative, the US$ stable coins. Philipp Sandner, Blockchain Expert
Further Readings / Additional Resources
- Here is the link to the blockchain master program of Frankfurt School https://www.frankfurt-school.de/home/programmes/master/blockchain-digital-assets
- The central bank digital currency tracker of the Atlantic Council: https://www.atlanticcouncil.org/cbdctracker/
- CBDC definition https://www.investopedia.com/terms/c/central-bank-digital-currency-cbdc.asp
- Definition legal tender https://www.investopedia.com/terms/l/legal-tender.asp
- Swift https://de.wikipedia.org/wiki/SWIFT
- Bhutan https://en.wikipedia.org/wiki/Bhutan
- Stable coin https://en.wikipedia.org/wiki/Stablecoin
- Tether coins https://en.wikipedia.org/wiki/Tether_(cryptocurrency)
- Lender of last resort https://www.ecb.europa.eu/ecb/educational/explainers/tell-me-more/html/what-is-a-lender-of-last-resort....
Previous Episode
This Month in GSA Startups - February 2022
Welcome to This Month in GSA Startups - meaning Germany, Austria and Switzerland, for February 2022 by Startuprad.io - in a news recording with Chris from New York City and me Joe, from Frankfurt am Main. This recording is sponsored by Invest-in-Hessen and Startupraven.com. It is in syndication with our very own station www.startup.radio, our partner station IBGR.Network and the Fundscene blog.
We recorded this new episode on Tuesday, February 22nd, 2022. Today we bring you everything from a new Switzerland-based unicorn to a new take on quick delivery - pardon the pun.
We start out with mega-deal in Gaming: ESL Gaming is sold for 1bn US$, Munich-based Fintechsystems is sold for 120 mn € and Aachen-based Next Ego may accomplish THE turnaround of the whole year, coming out of insolvency, they are looking to list via SPAC, valued at 1.5 bn €. Switzerland has a new unicorn, congratulations to Scandit, Gorillas wants to buy a french competitor and is thinking about a SPAC deal. Also, we have a large update on neobanks in Germany, and they are not all doing well.
Let's talk startups:
https://medium.com/@startuprad_io/this-month-in-gsa-startups-february-2022-44520c52b1eb
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Chartable - https://chartable.com/privacy
Next Episode
Inside of the Mind of a Blockchain Investor
People talk today about the crypto winter, but I went through the time after the Dotcom Bubble burst and there are a lot of similarities here. Wolfgang Männel, Blockchain Investor
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A few years ago, I was attracted by the opportunities the blockchain offers. Wolfgang Männel, Blockchain Investor
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As a blockchain investor I am currently looking at ... 1) Everything that is happening in the DeFi space, especially the new ways of money transfer. 2) The Gaming Sector. It is a market with 3 bn people 3) Metaverse... it maybe a big failure or a big success. There is a fair chance it becomes huge 4) IoT security. For example, a car currently has more than 200 IoT devices. 5) The whole world of financial services, including insurance. Just look at the back offices of asset managers.
Wolfgang Männel, Blockchain Investor
The Investor
Wolfgang Männel (https://www.linkedin.com/in/wolfgang-maennel/) has been working for 30+ years. He was born and raised in Franconia (https://en.wikipedia.org/wiki/Franconia), close to Nürnberg in Germany. Wolfgang started out in sales, started an agency and joined a consultancy (today Capgemini Invent). Surprisingly he had also a stint at a radio station, focused on classical music called Klassik Radio (https://www.klassikradio.de/). Klassik Radio is also the only public listed radio station in Germany. In between he was also an investor with 3i Group, at the time active in venture capital and private equity. He has also been an investor in turn-around cases during the subprime crisis.
If you have seen many crises before, you know how to react. I remember the 1987 Russian crisis, the Dotcom Crash, and more. ... It was always followed by a long phase where it as difficult for startups to get any kind of financing. It took years to recover ... but the only way after all the crisis was up. The valuations always went up after the recovery Wolfgang Männel, Blockchain Investor
He is the co-founder (senior partner) of Blockchain Founders Group BFG, a company builder and venture capital investor. You can apply here: https://www.f6s.com/ look for block rocket.
We are looking to be the first or second money in, even pre-revenue. Most companies we invest in have an MVP. Wolfgang Männel, Blockchain Investor
Further Readings / Additional Resources
· 1987 Dissolution of the Soviet Union: https://en.wikipedia.org/wiki/Dissolution_of_the_Soviet_Union
· Dot-com bubble https://en.wikipedia.org/wiki/Dot-com_bubble
· Sub-Prime Mortgage Crisis https://en.wikipedia.org/wiki/Subprime_mortgage_crisis
· Here is the personality test 16 personalities: https://www.16personalities.com/
I turned to turn-around investing at the time of the sub-prime crisis. Wolfgang Männel, Blockchain Investor
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