Evidence of a sea change that will make us stop using ATMs and cash, even if they continue to exist. But the digital age is pushing us more and more towards the immaterial. First step: it stop of withdrawals with the ATM announced by the ING bank. Account holders will be able to withdraw from other bank branches but not from those of their own bank, which pushes on electronic transactions. The second step was announced by the European Central Bank which has decided to launch the digital euro project. Let’s clear it up now! It is not a cryptocurrency, but it will complement the paper euro. But how will it work? What do we have to do?
ATM withdrawal for ING customers: new from 1 July
ING had announced a few months ago that its customers non they could have more use the ATM for the withdrawal at the bank branches. The July 1 the stop has been made to withdrawals from ATMs of ING branches because these have transformed into advanced branches providing value-added services, among which the withdrawal is not included. The answer to this choice must be found in the words of Alessio Miranda, manager of ING in Italy, who explained that
the aim of the banking institution is to go more and more towards a sistema cashlesif mobile first. Aspects that, he emphasizes, are increasingly requested by our customers.
The only way then to use the ATM is to place it on one of the POS scattered in physical stores to pay directly without cash. Or by going to withdraw at the ATMs of other banks, however, bearing the costs of the operation.
A step towards the financial digitization of which the European Central Bank has made itself a champion by announcing the start of the digital euro project that will no longer require an ATM.
ATMs and withdrawals: how to do after 1 July?
For i customers of the ING bank, who find themselves in the need to have cash in their pockets, all that remains is to go to one ATM of another bank and withdraw the necessary amount, in compliance with the withdrawal limits set by its contractual conditions. Will you remember when, years ago, the orange account advertising allowed you to open your current account online and then have the possibility to withdraw for free at all Italian ATMs? ING’s decision to limit the levy has also led to rethinking the cost structure, which has been reshaped. For withdrawals of an amount equal to or greater than 50 euros, the cost of the operation is free. For all customers who have opened a current account before 2018, cash withdrawal is free for amounts over 50 euros, if the amount is lower, the cost of the withdrawal is 0.45 euros, as a bank commission. But there is a benefit. If on the orange account, the holder credits your pension or salary, the cost of withdrawals from ATMs of other banks will be 0 euro.
If you do not fall into any of these situations you will have a bank commission cost for each withdrawal of € 0.75.
ATM: will the era of bitcoins send him into retirement?
Readers older than a few years will remember when the first ATM. The news was overwhelming. The ATM has celebrated 50 years in 2018. He was born in Sweden and arrived in Italy in 1976 when the Cassa di Risparmio di Ferrara bank installed and activated the first terminal in our country.
Paul Volcker, head of the Federal Reserve (the FED, Central Bank of the United States of America) in the 1980s, came to define the ATM
the only truly useful innovation in the banking sector.
Today, on the other hand, Fintech, bit-based technological finance, or blockchain, is making its way. Technologies that break down a process into several phases, such as that of a withdrawal or an ATM payment, making it safer and above all more digital. Bitcoin is a virtual currency created in 2009 created by one or more hackers under the pseudonym Satoshi Nakamoto. It is not a regulated currency because behind it there is no central bank that establishes its operating mechanisms. Yet to date they are around 9 million bitcoins in circulation and its virtual exchange rate is about 27,140 euros. The bitcoin exchange takes place through an encrypted technology that allows you to sell current currency (such as the euro) to obtain bitcoins and spend them where they are accepted. Not being a paper currency, yours usage is based on virtual exchanges that require a virtual wallet.
Its high value and a technology that exposes you to the risk of cyber attacks make this virtual currency unattractive and very insecure. But the road to a digital currency has been drawn.
Digital euro: the ECB accelerates
The ECB has announced that it has launched the digital euro project. A coin that it will not replace paper money but will integrate it, and will position itself in that slice of needs expressed by citizens who use the euro, to also have a digital tool. The decision was made after some tests carried out on a sample of European citizens, and after having had encouraging results. But it is also one response to bitcoin or to all those virtual currencies that have attracted several citizens in recent times. The digital euro will be one legal currency and above all it will be regulated by the ECB. It will not be subject to quotations because it will always be the euro but in digital technology. To get to be able to see the first digital euros, however wait at least five years. The first two will be needed for experimentation and then another three years will be needed to develop the coin. A roadmap that will soon allow us to say goodbye to the ATM to have cash because we can pay with a digital currency as if we had it in our wallet in our pocket. Of course, technologies such as an app or other systems will be needed, but you can also pay without having to have a payment card.
Digital euro: what the future can be like
Fifty years after the ATM, there is also digital currency. A substantial difference between electronic payment instruments that do nothing but transfer money from one current account to another with an intermediated transaction between banks, and a real currency, as if in five years we will go to pay for coffee with a euro that will be able to be cashed by the merchant immediately but also reusable for example by giving change. The operation could be imagined as a virtual wallet in which the citizen pays 2 euros for coffee with five digital euros, and receives three euros in change. Both the merchant and the consumer will have the digital euro is immediately available.
A real revolution which, however, is imposed by the times.
We are entering the era of digital currency. As happened in the past with commodity money or representative money, digital money is establishing itself in response to changes in society and the evolution of technology. Fabio Panetta, Italian member of the executive committee of the European Central Bank.
In any case, the digital euro will in no way replace paper money, which will continue to circulate and have the same value and characteristics as today.
The lawyer Angelo Greco shows us what awaits us with the digital euro.
What benefits from the digital euro
Billions of transactions now take place with electronic means of payment, such as ATMs, credit cards, rechargeable cards, recharged wallets and even online. But it always lurks around the corner risk of fraud, or identity theft or card cloning which still make electronic payment not so secure. L’digital euro instead it will be a means of payment cost-free, safe, accepted everywhere. The aspect of privacy protection is also fundamental (with protection from the exploitation of information for profit and from unjustified intrusions), and environmental sustainability (negligible energy consumption compared to crypto-currencies). Also it will be accessible to alli because it will be nothing more than one euro available in digital format.
Digital euro: the possible disadvantages
Like any ambitious project, there is also the downside with several unknowns that must necessarily be resolved. The stability of a monetary system is guaranteed by the fact that money, as a common good, is reliable, safe and above all accepted by all. These aspects should not be overlooked in the development of digital euro technology for avoid creating tension in the financial system and go to harm the very “tranquility” of the paper euro.
It will also have to be decided whether the digital euro can only be used to settle transactions or used for investments.
Also very important is the technology that you will want to use; whether a centralized system in which an entity regulates transactions, guaranteeing greater efficiency but also safeguards, or decentralized to allow transactions to be carried out directly between end users.
Being then a digital currency, which therefore travels on the net, it must also be allowed to be able make offline payments, in case of problems or no connections.
In short, a series of critical issues that will have to find a solution. But this is still Fabio Panetta
The digital euro will be successful if it brings benefits to stakeholders: citizens, traders and financial intermediaries.
We just have to start thinking about using a digital euro instead of an ATM in the very near future.
Expert in ethics and controls, aspiring journalist, born in 1976.
I graduated in Political Economy from theBocconi University, and I have a Master in Management in the “public utilities” sectors at MIP. Since 2001 I have been involved in audit, compliance and risk management within multinational companies in various sectors, such as: *IT, Luxury, GDO, Gaming, assuming roles of responsibility and team management. Passionate about ethical issues in business, for some years I have also been dealing with ethical sustainability of companies and alternative finance.
My motto is? “Anything can be done when the truth is seen through the eyes.”