EU Considers Deploying Digital Currency

The European Union is considering its own digital currency. It recently released its assessment report. One thing that's pushed them to do it is to prevent what they call a foreign digital currency from being adopted in Europe. It could mean something like bitcoin or maybe something like China's digital yuan which will probably be the world's first digital currency. Digital currencies are different from the internet banking and credit cards we use today. With digital currency all transactions will be recorded on central ledger - on the blockchain. That means the issuer - the central bank - will know every transaction you make. One tweet called the EU's plan the final nail in the coffin of European banks. I talked to Daniel Lacalle about it. He wrote 'Escape from the Central Bank Trap.' He told me that a digital currency will inevitably drive interest rates lower and make it impossible to make a profit. I asked him why.