As a seasoned crypto investor who has navigated the ever-evolving landscape of digital currencies across continents, I find this latest development between European states and the ECB regarding the digital euro quite intriguing. Having witnessed similar power struggles and regulatory debates in various regions, I’m not surprised to see these tensions arise.
There seem to be disagreements emerging between the European Central Bank and various EU administrations regarding the rules that should govern a digital version of the Euro.
The relationship between influential European countries and the European Central Bank is growing tense over the issue of regulating the digital version of central bank money, known as the digital euro, which the ECB has been working on since 2021.
According to a report from Politico, it’s claimed that certain European governments such as France and Germany believe the European Central Bank (ECB) exceeds its power when regulating the amount of digital currency that private citizens can store in e-wallets backed by the central bank.
if they decide on a high limit, people might be able to take out large amounts of money from traditional banks during an economic crisis, which could potentially disrupt the financial system as a whole, according to the report.
One diplomat stressed in a commentary for Politico that some countries are concerned that any limits on the digital euro could infringe on personal financial freedom, stoking fears of excessive monetary control.
European states challenge ECB’s control over digital euro
The document highlights an ongoing debate: Should the influence over financial policies be more balanced between the European Central Bank (ECB) and the European Union member states? As the ECB strengthens its control over monetary policy, some countries are expressing concerns, advocating for a larger role in designing the structure of the proposed digital euro.
Representatives from nine countries, among them Germany, France, and the Netherlands, stress that the digital euro should not be solely managed by the European Central Bank (ECB), considering it a more encompassing financial matter that could significantly impact everyday monetary exchanges across Europe.
By mid-September, information from the Atlantic Council think tank in the U.S. indicated that a total of 134 nations worldwide are investigating central bank digital currencies (CBDCs), which is an increase from the initial 35 countries back in May 2020. Notably, more than 65 countries such as India, Australia, and Brazil are deeply engaged in CBDC research, either in the developmental, pilot testing, or deployment stages.
As a researcher delving into central bank digital currencies (CBDCs), I’ve found that each G20 nation is actively exploring the potential of their own digital currency. In fact, a staggering 19 countries are currently deep in the investigation phase, according to recent findings by a leading think tank.
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2024-10-29 13:04