ECB News

Banks warn stablecoins could siphon deposits from the banking system, but policy and regulatory experts say there’s little evidence of it happening yet.

European Central Bank executive Piero Cipollone has argued that rising geopolitical tensions make a European-controlled payments system a strategic necessity.

Economists urge EU lawmakers to back a public digital euro, warning that private stablecoins and foreign payment companies threaten Europe’s monetary sovereignty.

Experts say the digital euro’s outcome hinges on a political compromise with parties fighting for the limits of privacy and online functionality.

The Council of the European Union endorsed the launch of the European Central Bank’s digital euro in both an online and a privacy-focused offline version.

The European Central Bank plans to enable DLT transactions in 2026 as it prepares for the digital euro issuance and lawmakers establish rules on privacy.

Legal experts are concerned that transforming ESMA into the “European SEC” may hinder the licensing of crypto and fintech in the region.

The European Central Bank said stablecoin risks in the euro area are limited, with crypto trading dominating use and retail adoption under 1%, while monitoring continues.

Dutch central bank governor Olaf Sleijpen warned that if stablecoins falter, issuers may be forced to liquidate their reserves, thereby magnifying stress across markets.

Extending ESMA jurisdiction to include financial markets threatens to slow innovation for crypto and fintech companies, but some policy experts see a silver lining.

The EU is reportedly drafting a proposal to transfer crypto and financial sector oversight to the ESMA, as part of a wider push to improve capital markets for startups.

The comments from European Central Bank head Christine Lagarde drew overwhelming backlash from the crypto community and political influencers.

France’s over $176 billion budget deficit may signal trillions of euros of newly printed money, potentially leading to more capital flowing into Bitcoin, according to Arthur Hayes.

Introduced in October 2020, Europe’s digital euro may not launch until 2029, according to ECB Executive Board member Piero Cipollone.

EU finance ministers agreed to impose holding limits on the digital euro, reaching consensus on procedures for setting caps during the latest Eurogroup meeting.