Mahir Alkaya on the digital euro and the battle for our money

The possible introduction of a digital euro calls for more political involvement, as this change will have a major impact on society and the banking landscape. So says Mahir Alkaya, Member of Parliament of the SP and author of the book 'Who owns our money?' in conversation with Holland Gold. He argues for more involvement of politicians in the development phase of central bank digital money. This is necessary in order to guarantee the anonymity and neutrality of this digital money.

According to Alkaya, banks have become too powerful in our society, because they control all digital payments and manage almost all savings. A monoculture has emerged, in which we as a society have become particularly dependent on banks. They have an almost unassailable position of power and know that the government will always act as guarantor if necessary. An unhealthy situation that must change in the future, according to Alkaya. And that means that we have to find ways to reduce the dominant position of banks.

Digital euro or deposit bank?

According to the politician, central bank digital money can be a means to that end, provided that it guarantees anonymity and it does not become programmable. The latter means that governments can determine what someone can spend the money on and thus impose restrictions on the use of money. Then a surveillance state as we know it from China could emerge. We also need to prevent commercial banks from playing a role in the roll-out of the digital euro, for example as intermediaries. For this reason, it is very important that elected representatives are more involved in the development of central bank digital money.

Alkaya notes that we don't even need a digital euro when it comes to securing savings and payments. To this end, he says, it would be better to look again at a kind of public deposit bank, where people can store their money and make payments safely and without risk. This gives people more freedom to choose what they want to do with their money. Savers can take it to a commercial bank that lends it out and receives interest on it, or they can park it risk-free and without interest in a public deposit bank.

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