The confusing genesis of money and the advent of the digital euro with Bas Dommerholt (AFM)

This week Paul Buitink speaks with Bas Dommerholt, researcher in the field of money and working at the AFM. Together, they discuss the various theories about how money came to be in history and the role of precious metals as a backing and saving tool. Bas's research focuses on the origin of money and he is critical of the dominance of the theory of raw materials.

They also discussed the shortcomings of the current euro. The euro remains too hard for Southern member states, which means that their debt also remains 'hard' and they could go bankrupt. Stopping the labeling of sovereign debt as risk-free in the risk weighting for banks could be a solution, according to Bas. This will raise interest rates for southern European countries, but the digital euro can help as a compromise to win those countries over, he said.

Finally, Bas gives his vision for the future of the digital euro.