Technology has undeniably revolutionized the beauty industry, transforming the way individuals engage with products, treatments, and trends. From innovative skincare solutions to virtual try-on experiences, here's an exploration of how technology has fundamentally altered the beauty game. Personalized Skincare and Beauty Improvements in technology have enabled the creation of personalized beauty experiences. Skin analysis tools, often utilizing AI and machine learning algorithms, can assess skin conditions accurately. Devices like handheld skin scanners or smartphone apps can analyze skin texture, detect issues, and recommend tailored skincare routines or products based on individual needs. Companies like Neutrogena and L'Oréal have developed apps and tools that allow users to track skin changes and receive personalized recommendations, empowering consumers to make informed choices. AR and Virtual Try-On Augmented Reality (AR) has fundamentally changed the way people ex...
The world of cryptocurrencies and, in general, of digital assets is having a boom period in recent months: between the growth in the value of Bitcoin, Ethereum, Dogecoin and the new fashion of NFT among artists and investors, the arguments are not lacking, but they exist also another nuance of this macrocosm, namely digital currencies. A complex world to analyze but which realities such as China and the European Union are studying with great interest in an attempt to propose, in addition to cash, a virtual alternative to their own currency . hollyhealthfitness
The European Central Bank has already published a report on
the "Digital Euro", what could be the eurozone's first digital
currency. It is clear, therefore, that the future plans of the Union include
the introduction of electronic currency over the next few years, with an
experimental phase possibly coming as early as June 2021. As for the world of
NFT, however, the citizen Many doubts remain to be resolved: what exactly is
the digital euro? How will it work? What are its advantages and disadvantages?
Digital Euro: What It Is and How It Works
The digital euro is nothing more than the electronic
equivalent of the paper cash euro used in traditional payments, also called
"fiat money", only in a parallel virtual format and not a substitute
for banknotes . This new instrument will in any case be accessible to
businesses and citizens and its legal tender guaranteed by the European Central
Bank (ECB). The exact technical term is CBDC (Central Bank Digital Currency, or
Central Bank Digital Currency) of the Eurozone and its value will be exactly
equal to the physical currency: a digital euro will be worth one euro in
currency.
The objective of the institutions will be to make the
digital euro usable in parallel with banknotes to make payments in the 19
countries belonging to the Eurozone (therefore not in countries such as
Switzerland, United Kingdom, Denmark, Croatia, Poland and Hungary) quickly and
securely. . The European currency in digital format would also be a way to
embrace financial technological innovation and cautiously approach the world of
blockchains, shared data structures that guarantee greater security thanks to
cryptography.
After all, its operation will be somewhat similar to that of
cryptocurrencies: the digital euro, just like Bitcoin, will be managed and
regulated through blockchain technology and, in order to be able to use it in
the purchase and sale of goods and services, it will be necessary to create
your own wallet. digital (wallet) to keep money and carry out interest
transactions in peer-to-peer, i.e. without the need for an intermediary.
Yes, it will not be necessary to open a bank account as the
Digital Euro will be injected by the ECB directly into the pockets of citizens,
removing relationships with private banks. The latter, however, would deal with
the distribution via ATMs or bank branches to electronic wallets contained, in
all likelihood, in smartphone applications.
Differences with Cryptocurrencies
At this point a questions arises: what are the differences
between the digital euro and cryptocurrencies? If usage is so similar, why not
directly leverage Bitcoin, Ethereum or other existing digital currencies? Both
questions can be answered by explaining the main difference between the two:
the Digital Euro, unlike cryptocurrencies, is not decentralized as the entire
infrastructure will be controlled by the central authority which is the Central
Bank.
It is thanks to this centralization that the digital euro
can maintain the 1: 1 exchange ratio with the physical counterpart, given that
stability is considerably greater than Bitcoin & co, which are instead
extremely volatile as they lack intrinsic value. and the support of a
We also remind you that cryptocurrencies originate on the
Internet, are not subject to issuance, guarantees or control by central public
authorities, have no connection with legal tender currencies known to us
(except in the case of some stablecoins linked to the value of the dollar) and
their value is constantly changing even abruptly. We have seen the
demonstration in recent months, with Bitcoin reaching an all-time high
surpassing 62 thousand dollars in value ; or even the Dogecoin has seen a
breathtaking growth of 340% over the last period, and then collapsed along with
the other cryptocurrencies .
Pros and Cons
The pros and cons are numerous and centralization is part of
both, given that the above-mentioned advantages are answered by the problem of
independence. Cryptocurrencies are in fact appreciated by investors and, in
general, by more informed consumers in the financial field as they are
disconnected from a higher centralized power such as European and international
banking institutions.
In other words, those who use cryptocurrencies for
transactions also do so for a matter of privacy and difficulty in tracking them
. Not surprisingly, hackers around the world ask for ransom in Bitcoin when
they carry out ransomware attacks, as happened in the Municipality of Brescia
recently .
Even experts have criticized the digital euro in light of
these possible risks, including the CEO of Conio Christian Miccoli : "A
digital euro, structured like the digital yuan, would imply the possibility for
the national government to control financial movements with the possibility of
blocking individual funds at one's own discretion and programming smart
contracts to force or prohibit certain categories of expenditure " .
He was then added by the governor of the Bank of Luxembourg
Yves Mersch: "Some argue that a digital currency based on tokens may not
guarantee complete anonymity. If this proves, it would inevitably raise social,
political and legal problems" .
Another problem not to be underestimated concerns the role
of banks following the launch of the digital euro , given that a "mass
conversion" from cash to the digital counterpart could take place. In that
case, lenders could see their deposits decrease and, as a result, they would
have less liquidity for loans to citizens. Furthermore, a radical change in
their business model cannot be ruled out due to the advent of the Digital Euro.
The disadvantages could be different, but there is also a
particularly long list of advantages, given that the Digital Euro can
guarantee:
• Streamlining of transactions and processes: a digital
payment can take place in extremely short times - if not immediately - and in a
very simple way, even with a simple tap on the display of our smartphone;
• Cost reduction : the digital euro does not require a
middleman (intermediary) like a private bank and, consequently, the absence or
significant reduction of costs associated with payment systems will be ensured;
• Reduction of the ecological footprint : being a virtual
currency it does not require printing in the form of banknote or physical
currency, consequently the ecological impact would also be significantly
reduced;
• Financial inclusion: the digital euro does not require the
creation of a bank account since the relationship is direct between the
consumer and the European Central Bank;
• Immediate support for citizens : in the event that a
European citizen needs financial support, the individual states of the Eurozone
could help him immediately with ad hoc support measures. In other words, the
digital euro would strengthen the monetary policy transmission mechanisms;
• Anti-money laundering and containment of financial crimes:
since the digital euro is managed by the ECB and the transactions registered by
the institutions, the phenomena of money laundering and tax evasion would be
drastically reduced. In addition, major mitigation of the financial effects of
cyber attacks, natural disasters, pandemics or other extreme events that could
hinder the supply of the currency is expected.
Situation in Europe and in the world
The European Central Bank has recently released the data
relating to the latest public consultation on the possibility of creating and
supporting a Digital Euro, an occasion in which Fabio Panetta, member of the
Executive Committee, said: "We must also take the time to work
scrupulously. next months, the Governing Council of the ECB will decide whether
to initiate an investigation phase on a digital euro. [...] At the end of the
investigation, the Governing Council would decide how to structure the digital euro
and whether to move on to the implementation phase of the requirements user.
This phase, which will last several years, would be dedicated to the
development of integrated services, tests and the possible practical
experimentation of a digital euro " .
In other words, the realistic forecast by the European
institutions is four to five years before the implementation of the digital
euro . In this period it will be necessary to establish an in-depth dialogue
and properly study the implications of its implementation, including the
aforementioned problems of user privacy and the role of private banks in the
market.
In the world, however, the situation is somewhat different:
Sweden is getting closer and closer to the implementation of the e-crown, the
digital currency that will definitively give life to the great project of the
"cashless society"also by 2022. On the others side of the globe,
China appears to be in effect the first world economy to introduce digital
currency: in October 2020, in fact, the city of Shenzhen started testing the
digital yuan by distributing 10 millions of currency through WeChat's e-wallet
to 50,000 random residents, not counting four other cities of the Dragon for a
total of about 2 million citizens registered in the lottery.
With a thousand implications, this is the future
At present it is difficult to predict exactly the
implications of the digital euro on the European economy, but we can focus on
an important point of the aforementioned advantages, since it is a problem well
known to us Italians: the containment of tax evasion . The latest data
published by the Ministry of Economy and Finance speak of a tax gap of 68.8%,
ergo the Treasury is missing about 70% of the receipts due. So, it is easy to
deduce that the simple birth and promotion of the digital euro in Italy will
most likely cause a series of protests at a national level due to the excessive
tax burden and the problems of the Italian economy. In short, exactly as
happened in the case of electronic invoicing, another innovation that has
caused many problems for businesses and self-employed workers.
Another factor not to be underestimated, therefore, could be
the social impact of the implementation of the Digital Euro, not only in Italy
but also in the rest of Europe, especially in the case of countries that are in
an economic situation that is anything but positive. Overall, it is clear that
this move by the European institutions is the attempt to move towards thefuture
of transactions, more secure, simplified and "clean" than the current
reality. To make it a tool for the benefit of the consumer, however, it will
take a long time.