Browsing: Digital euro

The ECB’s renewed push for a digital euro aims to provide a resilient backup for digital payments, addressing crises and enhancing financial sovereignty, while lawmakers raise concerns over privacy and bank risks.

ECB President Christine Lagarde urges action on regulatory gaps for non-EU stablecoins, emphasizing the need for robust equivalence regimes to protect investors and maintain financial stability amid global competition.

The ECB faces a strategic challenge in the digital currency space, balancing the development of a digital euro against the dominance of US dollar stablecoins, with implications for the EU’s monetary sovereignty and the broader crypto market.

The European Commission’s softer stance on foreign stablecoins under the MiCA framework has ignited optimism in the crypto industry, contrasting with the ECB’s earlier warnings.