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.jpgdigital 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.

Featured articles by Paulo Pinto

But if you are looking for exciting stories, you still have the stock market at record highs.

There we can already see inflation, and so it goes also in real estate. How long until it gets to bread and milk, or wine?

* * * * *

Everybody creates their own advantages and disadvantages in life, starting with parenting.

At some point you have to start thinking. Either about your money or in what’s dearest about your life.

Until next time.

Paulo


More stories about wine investment

Featured


Five useful apps for wine lovers anywhere in the world

 


Investing in fine wine remotely in times of Covid, tariffs and stuck cargo ships

 


Alti Wine Exchange Indexes in 2020: despite it all, safe and strong returns for fine wine

 


Read and watch our fine wine investment tips and analyses

 


Introducing our internal index for fine wine investors

 


Outside the bottle | Prosperity is not automatic: a lesson from top wine producers

 


Fine wine withstood a tough year. What's ahead for 2021?

 


Why not give your loved ones a rare wine Christmas gift card?

 


What makes Seña a masterpiece of New World winemaking

 


Why people are turning their passion for wine into investment

 


How to build wealth with a strategy based on fine wine

 


Outside the bottle | Could 2021 be the year of hard assets?

 


Moscatel Kingsman: a Portuguese family tradition turns world-class

 


How to ensure safety when investing in fine wine

 


In the ‘everything bubble’ era, we plan ahead with alternative investments

 


It’s harvest season! Celebrating the month of the Vendanges

 

Explore More from Our Blog

Ever heard of a wine cocktail?

DEAR READER, I hope some of you learned from the reader letter last week [hyperlink to Week Ten post] and checked your attics! You never know how much wine sits above you, waiting to be uncorked and decanted—on someone else’s dime! Dear Sommelier Ferdinand, I have a...

What on earth is a ‘Wine Decanter’?

DEAR READER, It’s come to my attention that many of you are ill-informed, misinformed, and frankly, uninformed about how wine is to be consumed. Were I only a wine enthusiast, it would be wholly dispiriting. But—wine is my profession, and I’m obligated to recognize...

“What’s My Next Question?” – Benjamin Kaplan

What’s My Next Question? On a random day like today 11 years ago, a legendary Harvard Law professor and lawyer, Benjamin Kaplan, died at 99 years of age. A rich, marked life that left an impact long after his last breathe. Apart from influencing the likes of Ruth...

Wine that Makes You Look Up

Wines that Make You Look Up Can you imagine having a device that magnifies your view and never thinking to look up, never pointing it toward the sky? Until August 25, 1609, nobody had. Enter Galileo Galilee, the man who changed the way we see and interpret all that is...

Should you be swirling your wine before consumption?

DEAR READER, Through all the melodrama of the past few weeks, I’ve neglected to educate the newcomers about the art of winetasting. So, I dug deep into my inbox for this query: Sommelier Ferdinand, I went to a ball last night and wasn’t aware of the proper pre-drink...

Sommelier Ferdinand answers “What’s the point of drinking wine from a hundred years ago?”.

DEAR READER, I’ve heard what you’ve all had to say, and I’ve decided to reach out to Jerry, once again, to bury the hatchet. Who’s to say if he would be open to making amends… but I made the effort, on behalf of all you insightful readers! I’ll keep you all updated on...

BOXED WINE AND AN ANGRY RECIPIENT – A FOLLOW UP

DEAR READER, Something unprecedented has happened. My assistant has received an additional letter from Jerry. Remember him—from last week [READ HERE] Well, our beloved wine purist wrote back after reading yesterweek’s column: Sommelier Ferdinand, I don’t care about...

Transcending Time through Wine

On August 11, 1888, The Scientific American published its 658th issue, replete with exciting findings. From “A Study on Whirlwinds,” to “The Distillation of Peppermint" and thoughts on the human conscious, this popular science magazine had already been around since...

Boxed Wine and an angry recipient.

What an experience, to receive all your criticisms. That would shake any normal individual. But I’ve spent years having my judgments under a microscope, so I’ve learned to shut my doors to it. You are all welcome to try—but I won’t be changing any time soon! Speaking...

Sommelier Ferdinand answers “What it takes to become a Sommelier”.

DEAR READER, As the grapes grow richer, so do the bottler and buyer! Wine is an investment, my dear readers. Never forget the long game! Now, for some advice you folks have solicited: Sommelier Ferdinand, I want to be a sommelier, like yourself. I have the respect for...

Harry Potter and the Magical Creation of Seña 2007

On July 21, 2007, J.K. Rowling released her seventh and final book of a most memorable series. In just 24 hours, Harry Potter and the Deathly Hallows sold more than 11 million copies! On that same day, in a land more fascinating than Hogwarts, Seña 2007 was getting...

This week Sommelier Ferdinand answers the difficult question “Which do you prefer: Red or White?

DEAR READER, Some wrote in after last week, wishing me happiness…? Sending me love…? What do you all think, I’m still in love with Matilde? Save your pity for someone who needs it, I beg you! Anyway: Sommelier Ferdinand, Which do you prefer: Red, or white? -Clarise...