Sveriges Riksbank researchers argue that “all CBDC payments will involve reconciliation with one or more remote ledgers” that track the transactions and ownership to prevent double-spends. This requirement—according to the bank—should squash the hopes for a cash-like anonymous digital currency.
Bitcoin used for ‘funny business’ and must be regulated globally: Lagarde
The ECB president says Bitcoin is being used for ‘totally reprehensible money laundering activity’ and calls for international efforts to clamp down on crypto
European Central Bank President Christine Lagarde has called for a global crackdown on the world’s biggest cryptocurrency—and said existing loopholes need to be closed. With the crypto markets surging in recent weeks, this serves as further evidence that central banks are scrutinizing BTC like never before.
What the ECB’s questionnaire on the digital euro asks—and what it means
Modern Consensus took the European Central Bank’s new digital euro questionnaire to see what it reveals about regulators’ concerns with what would be the biggest currency change since the euro
The European Central Bank questionnaire is aimed at both the public and financial experts—in order to gauge their views on a digital euro as it considers launching a central bank digital currency that would be available alongside cash.
ECB fears stablecoin ‘bank runs’
According to the European Central Bank, a panicked “stablecoin run’ could cause damage that spreads into the traditional banking and financial system
Specifically, the ECB said stablecoins are vulnerable to so-called liquidity “runs” if consumers fear that the token may lose its value. In such instances, the stablecoin may stop functioning normally and its redemption may not be possible in the usual way.