May 14, 2022
  • May 14, 2022

EU Says Stablecoin Bill Coming in March

By on February 11, 2022 0

The Chinese digital yuan may be the biggest central bank digital currency (CBDC), but a digital euro is coming.

European Union Commissioner for Financial Services Mairead McGuinness announced plans on Feb. 9 to introduce a bill creating a digital euro next year, according to Politico.

Based on current experiences, this means that an EU CBDC could be launched as early as 2025. The EU has been largely bullish on a CBDC for several years. In particular, the President of the European Central Bank (ECB), Christine Lagarde, announced the Twitter in July that the bank had “decided to move up a gear and begin the investigation phase of the digital euro project”.

She added that “in the digital age, people and businesses should continue to have access to the safest form of money – central bank money.”

In September, Lagarde said the demand for a digital currency is there, and “we should respond to that demand and make sure that we have a European-based solution, which is secure, which is available on friendly terms, which can be used as a means of payment on reasonable terms… and does not jeopardize the whole banking system, which should be an integral part of the proposal.

Read more: Tackling privacy issues would be key to ensuring EU citizens take up the digital euro

Privacy remains key for the EU, whose General Data Protection Regulation (GDPR) is one of the strictest and most extensive data privacy laws in the world.

In the United States, anyone expecting a response or even strong opinions from the Federal Reserve Bank’s long-awaited white paper on a US digital dollar, “Money and Payments: The US Dollar in the Age of Digital Transformation”, has been disappointed, Darrell Duffie, a professor of management and finance at Stanford University’s Graduate School of Business, told PYMNTS this week.

See more : A CBDC in the US will take years, but some benefits may come sooner

“…the United States needs to move forward, develop the right technology and decide later whether or not to use a central bank digital currency,” Duffie said.

But he pointed out that “Federal Reserve Chairman Jerome Powell said more than a year ago that it was better to get it right than to be first.”

China, India and Russia forge ahead

Meanwhile, China stepped up public testing of its digital e-CNY yuan at the Beijing Olympics this week. Although a planned official launch was not possible, largely due to the pandemic, the CBDC was widely used as Olympic sponsorships forced a blackout of the two payment apps which hold more than 90% market, AliPay and WeChat Pay.

Another major power aggressively pursuing a CBDC, Russia this week allayed fears that it was planning to ban private cryptocurrencies. In a February 8 announcement, the government and the Bank of Russia agreed on the regulation of cryptocurrencies, just weeks after the central bank called for an outright ban.

See more : Russian Central Bank May Ban Crypto Investments

Last week, another CBDC-eager country, India, eased concerns over an outright ban on cryptocurrencies, though their use as a means of payment remains off the table.

Read more: Crypto comes to India with digital rupee, 30% tax

Kenya asks the public to comment on a CBDC, treading cautiously. Despite being one of the first to experiment with digital currencies – Safaricom’s M-Pesa in 2007 – the central bank is still concerned about various risks, according to Kenya’s WTVB.

See also: Kenya Releases CBDC Discussion Paper While Seeking Public Comments

These include the loss by commercial banks of deposits that fuel loans, the financial exclusion of those without access to technology and its impact on the bank’s ability to combat money laundering. money, the bank said.

Zimbabwe’s central bank is exploring a CBDC while remaining firm in its opposition to private cryptocurrencies, according to bitcoin.com.

The same goes for Jordan’s central bank, Coingeek said.

Read also: Central Bank of Jordan eyes CBDC

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