• 11 Posts
  • 20 Comments
Joined 2 years ago
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Cake day: June 27th, 2024

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  • That’s the confusion. I’m only talking about technology.

    You’re contradicting yourself. Visa and co. don’t own technology. As you wrote, the implementation is left to banks and financial providers. You need to decide whether you want to discuss banks’ software implementation or the schemes designed by Visa and co.

    That could be done by just making a new NFC wallet app

    You can’t just build an app that uses NFC, like you build an app that uses a phone camera. You need special agreements with Apple (or Google) to access their NFC chip. Visa and co. don’t have such agreements which makes their schemes limited and unattractive compared to D€.



  • Visa and co. mostly don’t work on modern mobile phones.
    

    Never had a problem. Not sure what that means

    It means that you can’t transmit card details to a terminal through NFC. In general, Apple, Google, Xiaomi and co. push their own payment solutions (Apple pay, Xiaomi pay) and block use of NFC by other parties.

    The networks don’t do credit, or cash back rewards, points and the like. That’s not Visa and friends. Those are offered by the banks who back the accounts.

    I was using a short-hand language with the assumption that You understand that we are not talking about technological implementation. So to unpack my statements for You: Visa and co. mandate that banks and other financial providers implement credit, cash back or customer protection. ECB in their proposal of D€ does not mandate such functionality. In fact, the current proposal prevents implementation of such features. In sum, D€ is a different financial scheme than credit card schemes by Visa and co. and D€ is the less costly (not mandatory implementation of credit, cash back etc.) and more privacy-oriented scheme of the two.

    Debit cards don’t have those options and work exactly the same as far as the charge network is concerned.

    You listed AmEx previously and AmEx doesn’t do debit cards. So I assumed You want to talk about credit card networks. Visa and Mastercard’s “debit” cards are deferred-debit cards. Specification of D€ is more akin to prepaid cards. So again, there are differences and I’m not sure what kind of “public network” You are arguing for.

    In general, Visa and co. provide in parallel a large set of (often competing) financial transaction tools. Mostly, they haven’t invented anything, they just try to stay relevant in the rapidly evolving environment of financial-transaction providers. Especially, in case of digital wallets they are lagging behind. ECB can’t afford that.


  • What I mean is, one could just create a public charge card network that works the same way, with the same infrastructure that Visa, MasterCard, Discover, American Express, Diner’s Club, etc all use.

    Visa and co. mostly don’t work on modern mobile phones. Digital euro strives to replace apple pay and google pay as well. Visa and co. also have lot of redundant functions like payment by credit, solvency assessment, cash back rewards, travel points and purchase protections. Digital euro doesn’t have that and as a consequence, it doesn’t need to intrude into customer’s privacy as much as credit card companies do. Nor does it incur the vast costs associated with credit recuperation on banks.


  • I’m not sure it’s enough of a reason to invent a whole new payment system.

    The Euronews report lists the reasons:

    Visa and Mastercard, both American, account for 61% of card payments in the eurozone and nearly all cross-border transactions, according to ECB data.

    US President Donald Trump’s return to the White House and his hostile approach to both foreign policy and trade accelerated the debate, and at the European Council in mid-March, EU leaders set a deadline to approve the legislation before the end of 2026.

    The ECB’s push to launch one is partly a response to the rise of privately issued stablecoins, which have steadily eaten into the payments landscape.

    The message from Brussels and institutions across the continent is clear: Europe wants to control its own money.






  • There is probably a diplomatic protocol for these kind of situations. In the end, declining the opposing claim would amount to escalation. Conceding the claim would be sign of weakness. Your proposed solution would make fools of both parties. As already mentioned by EUobserver, there is a simple way out for Magyar by inviting Israeli president.

    Also mentioned by EUobserver, a similar unconfirmed invitation claim was made previously by Netanyahu after call with Merz. So maybe that is something that Occam’s razor could be applied to.