The digital euro – Europe’s way out of the vice of the great powers?
The European Central Bank is under pressure to act. With the newly christened Facebook coin Diem in the West, the digital yuan in the East, Europe is thinking of itself as a digital power in the all-too-familiar vice of the great powers. In its search for its own place in the world, however, the ECB does not want to admit defeat. With the increasingly concrete plans for the digital euro, the answer seems to be clear.
Five more years? – Christine Lagarde comments on the introduction of the digital euro and crypto-currencies
More and more people in Europe are swearing off cash. So the colourful euro notes seem increasingly outdated. And while central banks around the world – above all the Chinese Volksbank – are showing the way, ECB President Christine Lagarde is also convinced that the euro must become „fit for the digital age“. Contrary to the scepticism of her colleagues, she sees Immediate Bitcoin the digital euro already in the starting blocks. Last week, the debate on the possible introduction of the digital currency counterpart seemed to be picking up speed again. In a guest article for the French press, the chief monetary watchdog argued that the digital euro could become necessary to prevent the „introduction of foreign digital currencies in the euro area“.
CBDC – The European Central Bank’s digital euro: an assessment
But can the digital euro actually fulfil this role? Will it transform the European monetary system? Where are its potentials, where are its pitfalls? Jonas Groß and Philipp Sandner from the Blockchain Center of the Frankfurt School of Finance & Management and Alexander Bechtel from the University of St. Gallen asked themselves these questions. In their guest article they take a close look at the digital euro for BTC-ECHO. It’s worth reading.
Saudi Arabia and UAE – CBDC pilot project exceeds expectations
Great tasks are better done in pairs. Saudi Arabia and the United Arab Emirates must have thought so too. Together, both neighbouring and brother states have taken on the monetary policy forward-looking project of an own digital currency. Now the countries‘ central banks have published a first detailed report on the joint feasibility study. The results of the one-year test run prove the benefits of the block chain in domestic and cross-border payment transactions – and thus exceed the expectations of the central bankers. This should keep the Arabian Peninsula on a DLT course.
US delegates call for strict regulation of Stablecoins
While Facebook does not want to admit defeat to its currency project despite the constant headwind, US lawmakers continue to oppose global stablecoin projects. In the US Congress last week, members of the Democratic Party submitted another bill to regulate the dreaded alternative currencies. The aim of the initiative is to better protect consumers. It is currently impossible to predict what success the initiative could have. Although the current legislative period will end in just a few weeks, the Democrats should then have a majority in the US Congress. However, the crypto-community is sceptical about the draft.