The digital euro will protect consumer privacy from the” threat " of cryptocurrencies, - Digital Euro protects consumer privacy cryptocurrencies threats - according to an executive of the European Central Bank.

Sooner or later, the digital euro will surely arrive. In fact, from the European Central Bank (ECB) claim that it could be up and running in 5 years. This public currency is intended, among other things, to " protect the eurozone from the threat of cryptocurrencies." Fabio Panetta, member of the board of directors of the community entity, assures this in the Financial Times, which also highlights the power of digital currency to protect and boost consumer privacy.

In his opinion, the goal has to be to combat the spread of criptomonedas created by nations and businesses: “If the central bank engages in digital payments, the consumer will be protected, because we are not a private company, we don't have commercial interest in storing, managing, or monetize user data”. For this reason, the executive believes, they must anticipate the creations of others and articulate a digital payment system.

In a recent survey with users about their opinion of the future public cryptocurrency, privacy was the aspect that aroused the most concern. In this sense, Panetta asserts that the ECB is working on a system in which no one in the payment chain has access to all the information.

Digital Euro protects consumer privacy cryptocurrencies threats

In fact, they are considering the possibility of allowing anonymous payments (only with two devices connected to bluetooth) for small transfers, perhaps up to 100 euros. It recognizes, however, that most operations would be controlled to prevent “money laundering, terrorist financing or tax evasion.”

At present, Panetta detailed, nearly 2-thirds of the world's central banks are working on creating a public cryptocurrency. Another thing is the commercial banks that, in general, do not see this reality with very good eyes: recently, Morgan Stanley estimated that 8% of the bank deposits of the eurozone (about 837,000 million euros) could be changed to digital euros. On the table is also the fear that this will be the definitive goodbye to cash.

Digital Euro protects consumer privacy cryptocurrencies threats: The director recognizes that the creation of this currency will not only give more privacy to the consumer, but will mean “a fundamental change in the way in which payments, the financial system and society in general function”. He warned, in addition, that the European Central Bank plans to take all necessary measures so that virtual currency does not “do away with the traditional banking system or replace cash”. They will also strive to " not exclude innovation or become a shadow currency in smaller countries.”

And, among the barriers they are planning to put to the development of the European currency, is to limit, to 3,000, the maximum amount of digital euros that can be held. It will be one of the items of the day at the ECB meeting next July.

Digital Euro protects consumer privacy cryptocurrencies threats

The focus, undoubtedly, is on cryptocurrencies. And consumer privacy is the recurring argument for demonizing them. Panetta puts it bluntly “ " Cryptoassets like bitcoin are dangerous animals, which are mostly used for criminal activities and consume a lot of energy.” It is very complicated, he assumes “ "to regulate and control digital currencies, because no legal entity is responsible"” But, concretely “ "if the intermediaries are involved in the supply of them, then there will be supervision"”

Another important detail that must continue to be articulated is what access tourists travelling to Europe would have to the digital euro. In his words “" we must reflect very carefully on this and set a maximum. Central banks are in talks to ensure that their public cryptocurrencies will be interoperable, which would help make cross-border payments more efficient and cheaper.”

Digital Euro protects consumer privacy cryptocurrencies threats

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The two sides of the pandemic in the accounts of the fintech Revolut: the number of customers increases by 45% in 2020, but also the losses hit by the pandemic and the decrease in consumption

Revolut, the British fintech, closed 2020 with 45% more customers. The pandemic accelerated digitization but also hit fintech, which saw its losses increase to 122 million pounds, according to accounts presented this June 21.

The financial app reached 14.5 million personal customers and 500,000 business customers at the end of the fiscal year. This increase in users led adjusted revenue to grow by 57% year-on-year, to £ 261 million by the end of 2020 (up from £ 166 million in 2019), an increase of £ 95 million.

The pandemic increased the digitalization of financial customers, something that traditional banks are also seeing, but it hit consumption. Part of Revolut's business comes from these transactions because on each card transaction they earn a small commission, which is charged to the merchant not to the end customer.

In this sense, the data presented by the app indicate that COVID-19 reduced the volume of payments from March onwards, this was offset by the growth of Subscriptions, Investments and Revolut Business. Adjusted income in the second half of the year was 41 per cent higher than in the first half.

Gross profit increased by 215%, from £ 39 million in 2019 to £ 123 million in 2020. Gross margin improved by 24 percentage points, from 25% in 2019 to 49% in 2020.

The company notes that this combination of improved revenue growth and gross margins reduced quarterly adjusted operating losses by 90%, from £ 55 million in the first quarter of 2021 to £ 6 million in the last quarter of the year. Revolut points out that this "reflects the strengthening of the core business activities".

Year-round adjusted operating losses increased to £ 122 million(in 2019, the fintech recorded £ 98 million). Total comprehensive losses for the year increased to £ 168 million (in 2019 it was £ 107 million) reflecting this continued investment.

Revolut has a hybrid system of customers: free and paid. The number of subscribers to the Metal and Premium paid plans (customers with premium paid services) increased by 51%, surpassing the average overall customer growth.

In this sense, they highlight that the proportion of new customers who upgraded their plan to paid subscriptions grew from 11% to 14%. The customer base also increased, as did daily usage, and customer balances increased 96% to £ 4.6 billion at year-end (2019: £ 2.4 billion), with the average deposit increase of more than 30%.

Fintech also offers services dedicated to companies. In 2020, business users reached 500,000, more than doubling the figure (a 127% increase).