An executive board member at the European Central Bank, Yves Mersch, discussed bitcoin and its characteristics during his speech at Cash Symposium 2014.
The ECB’s move is partly driven by concerns over the growing adoption of US dollar-backed stablecoins, which could increase American influence in the global financial system.
Cipollone warns that Europe must act fast to prevent financial dependence on the US
ECB President Christine Lagarde dismisses Bitcoin as a potential reserve asset, while multiple US states propose its adoption for strategic reserves.
With Trump’s backing for stablecoins, ECB insiders are pushing for a CBDC alternative to match the competition.
The ECB emphasizes urgency for a digital euro, addressing reliance on foreign systems, legal delays, and balancing financial stability.
EU leaders worry that if the ECB has too much control, citizens could withdraw large sums from traditional banks, risking the stability the digital euro is supposed to ensure.
The Federal Reserve Bank of Minneapolis suggested that Bitcoin should be banned or taxed to help governments maintain permanent deficits and prevent fiscal imbalances.
FINMA stated that making the anti-money laundering rules mandatory for issuers is important to safeguard investors’ interests.
Bitcoin dominance has gradually risen beyond 56 percent following the poor performance of the spot Ether ETFs in the past three days.
While Bitcoin (BTC) has been regarded as exponential gold, its recent growth has significantly slowed down, thus increasing the divergence between adoption and underlying value.
Bitcoin grabbed the lion’s share of total inflows last week with Ethereum experiencing its best week of inflows since March, reaching $69 million.
The recent approval of spot Ethereum ETFs in the United States and Hong Kong has significantly increased overall crypto bullish sentiment amid heightened development activities.
With central banks starting to ease monetary policy, Hayes thinks the conditions are ripe for a new crypto boom.
EBA raised its concerns over potential financial stress arising in NBFIs amid their indirect exposure to crypto firms and crypto markets.
DZ Bank’s current infrastructure makes it possible for the bank to take part in the exploratory phase of the ECB’s project testing the settlement of large-volume capital market transactions in central bank money.