A digital euro is coming. We should be worried

by Jan 14, 2021Thinking outside the bottle0 comments

Euro-Skulptur%2C_Frankfurt_am_Main_%282019%29++Ra%27ike+WikiCommons.jpg

Paulo Pinto

Alti Wine Exchange founding member

Greetings, dear reader.

Huge change is coming to Europe thanks to the European Central Bank (ECB). Hardly good news, as this is poised to mean not only more inflation, but ever-growing control of citizens’ lives.

I’m referring to the proposed digital euro. An idea that speaks volumes also about what’s coming out of central banks in their current trend.

I’m shocked the media hasn’t picked up on this yet, but there’s thankfully room for debate. Let’s get to it.

But more in a minute.

It’s been already three years since my father went to hospital never to return home. He died of unknown reasons and I feel I let him down, not making enough. I had a difficult relationship with my father, but I guess he was doing his job of parenthood as best as he knew.

With him there was no teaching, there was only learning. He grew up poor, yet he did alright for himself. I was sent to the best schools, yet I didn’t think I was good enough and I carried that all my life. This made me either too trusting or too suspicious of those working with me, because I believed I always had something lacking.

For that reason, probably, my work was my life, with no hobbies outside capital markets, crazy hours every single day and no room left for anything else. It turns out I was very good at what I have done all my life in capital markets: I was able to stand up and I was able to solve problems, but I was not able to be a present father to my son – and, in a way, I repeated the mistakes I saw growing up.

I wanted to believe that just being a good role model was enough, but like in business, you should not resort to believe – just do it.

Will come back to this next time, because parenting is probably the most important thing in one’s life, and it’s a good topic that should interest most of you.

* * * * *

But the topic today is the digital euro.

digital euro photo ecb edit.jpg

What is problematic with the idea of a digital euro?

I have been warning Alti Wine Exchange subscribers for months about issues with money. Now I read a European Central Bank report about the digital euro to be launched sometime this year (2021), with arguments to take the cash out of your wallet and replace it with a digital currency.

When this happens, it will change forever the way we spend, save and invest, but more important: governments will have complete knowledge and control over any transaction. This is the totalitarian dream, with governments having total control over the individual.

I can already see the digital euro being sold to the public as a way of distributing money more efficiently for Covid relief. Could this be?

A Google search on the Venezuelan petro digital currency gives us the reassurance of what is coming: “Maduro ‘Gifts’ Petros to Venezuelans for Christmas”. “Venezuela’s Maduro: Airlines must use petros to pay for fuel”.

With the digital currency, the government of Venezuela can censor, freeze, sanction or confiscate any digital petros whenever it wants, for whatever reason.

It doesn’t take much imagination to see the same thing happening when the digital euro is introduced.

A digital euro is what comes next, and we are going to see much more inflation on our way to a cashless society.

That is why we have to position ourselves accordingly, by buying fine and rare wine at Alti Wine Exchange. A consumer product that can be sold later at inflated prices.

The prospect of inflation protection with upside revaluation in our bottles is the way to go, in my opinion.

 

Explore More from Our Blog

Alti Wine Exchange Indexes: 2021 overview and trends for 2022

Sergey Glekov Senior financial analyst The Alti Wine Exchange Indexes are a family of equal weighted indexes which trace price performance of fine and rare wines and shows equal weighted average returns on them. The indexes are subdivided by most important wine...

They have created the perfect storm for controlled demolition of money

I’m glad to be back talking financial insights, one glass of wine at a time. First they shut down the economy, to save lives. With the closure of the economy, production ceased. To compensate for non-production or reduced production, people were paid not to lose...

Spanish Cava Sparkling Wine: What You Need to Know!

Spanish Cava Sparkling Wine: What You Need to Know!

What is a Port Wine?

DEAR READER, Let’s start February off with a simple question: Good morning, Mr. Ferdinand, What is a Port wine? -Jacques Thank you, Jacques, for your brevity. Let’s get down to business! Ports are an underrated, very particular type of wine made in the Douro Valley,...

What to Expect for Fine Wine Investments in 2022

Let’s face it, between an ongoing COVID pandemic, erratic markets, fires, floods and major humanitarian crises, 2021 was exhausting. And though none of us can be sure what to make of 2022, we can say with confidence that fine and rare wine investments are looking...

Holiday Gift Guide for Fine Wine

It’s that time of year again! And so begins the search for the perfect holiday gift. Something unique, something that shows you truly care. How about a gift that keeps on giving? An investment. Imagine their surprise when you tell them that their gift is resting...

FAMILY-RUN WINERIES

DEAR READER, As I grow immensely in popularity, I’ve noticed more of you interested in my personal life. I didn’t begin e-blogging with this in mind, but I don’t mind indulging every now and then. I imagine my intellect intimidates a lot of you, so maybe shedding some...

The Truth about Fine Wine

Fine wine. What does that really mean? The truth is, as words, they don’t mean much. There is no official classification system for the title “fine wine.” It’s not like the regulated usage of “Premier Cru” or “Grand Cru Classé,” for example, rather anyone can throw it...

Maipo Valley Reds

DEAR READER, I am again-and-again charmed by my readers’ curiosity! It reminds me of being a young sommelier, ready to take on the world one glass at a time. I know far too much to feel that way again—but at least I can experience a shred of it through you all! Dear...

Liquid Harmony

Harmony. Think Crosby, Stills, Nash & Young. Think Picasso's The Old Guitarist. It’s that moment when various elements come together to create magic. And magic really is the word, no? Wine can also sip in harmony, and I can think of no better example than the...

Where Does the Phrase “Aging Like Fine Wine” Originate?

DEAR READER, I received this charming question from an inquisitive reader last week. Dear Sommelier Ferdinand, Where does the phrase “aging like fine wine” originate? It’s so fun! -Imani I just love your question! What a lively spirit you have, Imani! I’m more of a...

NOSTALGIA AND THE ADELAIDE DOURO RED

DEAR READER, Let’s get down to it! Dear Sommelier Ferdinand, I respect your point of view, but I must ask: don’t you think worshipping wines is partaking too mightily in the past? Wouldn’t you rather create your own memories than indulge in nostalgia? -Ethan Ethan,...