Category Archives: ECB

Auto Added by WPeMatico

ECB Chief Reiterates Lack of CBDC Justification

European Central Bank (ECB) president Mario Draghi has reconfirmed to the European Parliament that there are no plans to create a central bank digital currency (CBDC).

Draghi cited a lack of any prevailing economic conditions to warrant such as step, going on to suggest that DLTs hadn’t been severely tested as yet and still required “substantial further development before they could be used in a central bank context”.

The fact that discussions around the world about CBDCs is gaining some impetus hasn’t escaped the ECB or EU financial regulators, particularly in the light of Sweden’s Riksbank considering its own e-krona due to dwindling interest in cash and a rise in the use electronic money in that country.

The ECB, at one time scathing in its condemnation digital currency, has recently demonstrated a change of its stance, even suggesting that cryptocurrencies have a place in the future. It recently suggested that the financial body should begin to “…work on exchanges and platforms which provide services at the interface between crypto-assets and the real economy”. The comments were made earlier this year by Bank of France Governor Francois Villeroy de Galhau who also sits on the ECB’s Governing Council.

Bitcoin’s rising popularity currently feeds the debate globally whether the future direction of money is electronic rather than paper. The ECB chief has suggested however that an ECB digital currency would mean that the central bank would set itself against the banking sector in such a scenario and lead to potentially substantial operational costs and risks.

A view held by some experts is that a CBDC could make quantitative easing more effective bypassing the banking sector, also as a substitute for bank deposits, strengthen the transmission of monetary policy changes to the economy. Such views assert that a CBDC need not be nearly as disruptive as the ECB maintain in its criticism of the concept.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post ECB Chief Reiterates Lack of CBDC Justification appeared first on BitcoinNews.com.

Weekly Bitcoin and Blockchain News Roundup: Europe, 12 to 18 March 2018

Europe

13 March 2018

The European Central Bank (ECB) executive board member Benoit Coeure and Bank of International Settlements Markets Committee chair Jacqueline Loh wrote that “Bitcoin has put the spotlight on an old failing of our current system: cross-border retail payments.”, urging current banking and financial systems to improve as the best way to “rise to the Bitcoin challenge”.

14 March 2018

Bloomberg reported that Allianz Global Investors, Europe’s biggest insurer’s investment arm, has dismissed Bitcoin as worthless. It does concede that blockchain technology harbours massive potential for investors.

 

Kranj, Slovenia

13 March 2018

The Slovenian city of Kranj have built what it claims to be the “first blockchain monument” in the world. Placed at a roundabout in the city center, it features the familiar Bitcoin logo which can be viewed overhead.

 

The Hague, Netherlands

13 March 2018

Dutch finance minister Wopke Hoekstra called upon the parliament to warn that current supervision and regulatory frameworks in the Netherlands were still insufficiently equipped. The minister revealed that he would actively work in a European context, but that the approach would require a European and international approach.

 

London, UK

14 March 2018

Coinbase UK received an e-money license from the UK Financial Conduct Authority (FCA), effective from 21 March 2018. Essentially, Coinbase customers are now allowed to store their e-money on Coinbase UK accounts, enabling more payment options for them in the UK. The license, however, would not cover cryptocurrency activities.

 

Paris, France

15 March 2018

French regulators Autorité des marchés financiers (AMF) published a blacklist of 15 crypto-related France-based companies soliciting investments from the public. These companies contravened the new “Sapin II” Law No. 2016-1691 of 9 December 2016 on “transparency, the fight against corruption and the modernization of economic life”.

16 March 2018

The same AMF will be working together with its government as France aims to create its first guidelines through which enterprises could legally raise venture capital through so-called initial coin offerings (ICOs). Among some of the proposals include a visa issued to companies wishing to conduct ICOs, giving them official government approval.

 

Vilnius, Lithuania

16 March 2018

The Bank of Lithuania put out a call for tender for a proposal for software developers from around the world to assist it with developing its LBChain blockchain platform. It aims to help businesses to trial and implement sophisticated financial tech innovations.

The post Weekly Bitcoin and Blockchain News Roundup: Europe, 12 to 18 March 2018 appeared first on BitcoinNews.com.