Five fintech firms were selected for a special collaboration with the European Central Bank, which will see them test the digital euro, opening a pathway for fast and inexpensive payment methods.
Olli Rehn backs the ECB's planned digital euro, betting that the move will create opportunities for innovation and act as an anchor to maintain monetary stability as more people lose trust in cash.
Despite disadvantages, consumers are willing to adopt CBDCs in exchange for small rewards, according to an ECB paper, which also noted digital currencies keep the monetary system in check.
ECB's Macroprudential Bulletin takes a closer look at stablecoins, DeFi, and climate risks associated with ‘crypto-assets.’
François Villeroy de Galhau, governor of the Banque de France, said the second phase would see four or five experiments carried out on the digital euro platform.
The European Central Bank wants to issue stern warnings to eurozone countries about the necessity of "harmonizing" digital assets regulations, Financial Times report.
While commending efforts made to regulate digital currencies in the EU's MiCA bill, the head of the European Central Bank argued that a follow-up framework focusing on the two aspects of the market is already needed.
Fabio Panetta says that this would limit the risk of disintermediation of the banking system should the majority of people decide to save with the central bank.
Christine Lagarde remarked that digital currencies are highly speculative and very risky assets, but backed that the central bank will be behind the digital euro.
The European Central Bank has published a report presenting the privacy options it is considering in the development of a digital euro under the Eurosystems CBDC program.
The comment period has been open for just two weeks, but the comments have been piling up, with Germans dominating and most opposing the digital euro.
The commission wants to hear from finance specialists on their needs and expectations for a digital euro, its role in the economy, privacy protection, and more.
