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Just one correction: I did not state that the newcomers brought fragmentation or friction into the game. To the contrary, fintech helps reduce friction. The payments landscape was (and still is) fragmented and we are working together towards harmonised pan-European payments solutions.

Just one correction: I did not state that the newcomers brought fragmentation or friction into the game. To the contraty, fintech helps reduce friction. The payments landscape was (and still is) fragmented and we are working together towards harmanised pan-European payments solutions.

The regulatory technical standards on strong customer authentication from the European Banking Authority will probably put an end to this high criminal spending possibility since after 150 euro of cumulative contactless spending the PIN must be used again. Some communities have had such a spending limit on contactless in place from the start. 

Hmmm I wonder how many youngsters  still manage theirs savings using jars with coins ....  we live in the digital age, you know

The Dutch retailers calculated in 2003 that abolishing the 1 and 2 eurocent coins and introducing a rounding rule for cash payments saves them 40 million euro annually .... No small change I would say ...

That sounds a lot more sensible than the MUFG story a few days ago.

That is my first reflection too - what's the point here? Using blockchain -or any chain- technology to move fiat currency (Yen), ok, but that is what most banks are looking into. And giving this new currency a physical form factor and dispense that through ATM's when most countries are (in Europe at least) in the process of trying to get rid of fiat currency in physical forms like notes and coins as much as possible ?

The answer to the "why" question is not only driven by political and strategic motives: "instant is the new normal" as the ECB says. Just because we can, we must. As for Europe: of course there is a dilemma here because banks are faced with the choice between not innovating and waiting for Europe on the one hand, and innovating with a risk of fragmentation on the other .....