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Digital Euro Holding Limit: Debate Continues

Digital Euro Holding Limit: Debate ContinuesThe president of Germany’s central bank has highlighted the ongoing debate about the holding limit for the digital euro, Europe’s central bank digital currency (CBDC). He noted that recent Bundesbank research indicates that the optimal amount could be in the range of 1,500 to 2,500 digital euros per person. ‘The Jury Is Still Out Here’ […]

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ECB’s Joachim Nagel Urges Central Banks to Evolve: ‘We Need to Work on Our Business Model’

ECB’s Joachim Nagel Urges Central Banks to Evolve: ‘We Need to Work on Our Business Model’Joachim Nagel, President of the Deutsche Bundesbank and Member of the Governing Council of the European Central Bank (ECB), has raised concerns about central banks’ business model. “If part of your core product is loosening attractiveness then you have to think about another new core product,” he stressed. ‘We Need to Speed up on All […]

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Central banks must revise business model, embrace CBDCs — ECB member

Bundesbank’s president Joachim Nagel urged central banks to revamp their business models and adopt digital currencies during the BIS Innovation Summit.

Central banks’ future depends on a revision of their business model and speedy adoption of central bank digital currencies (CBDCs), said Joachim Nagel, president of the Bundesbank and member of the European Central Bank (ECB).

Nagel reportedly warned about the uncertainty surrounding central banks during a panel session at the Innovation Summit hosted by the Bank for International Settlements on May 6.

“If you would have asked me 20 years ago if the central bank business model” was “destroyable or not, I would have said no,” he reportedly stated in Basel, Switzerland. Nagel continued:

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MIT, German central bank will research CBDC privacy in new project

The Deutsche Bundesbank is the fourth central monetary authority to conduct research in conjunction with MIT’s Digital Currency Initiative.

The Deutsche Bundesbank is the latest monetary authority to team up with the Massachusetts Institute of Technology (MIT) Digital Currency Initiative (DCI) to study central bank digital currency (CBDC). President of the German central bank Joachim Nagel spoke at the launch of the project about challenges ahead for the digital euro.

Nagel told MIT students that the joint research will focus on designing security and privacy measures in a CBDC. The problem is that private digital payment solutions often use third-party services that gain access to consumers’ payment data, which they can use for commercial purposes. In contrast:

Nagel went on the say the current payments system does not work well. “German bank cards, for example, don’t always work in other euro area countries, even if they contain a payment scheme operated by an international company,” he said.

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ECB Economists: Bitcoin Fails to Become Global Decentralized Digital Currency, BTC’s Fair Value Is Still Zero

ECB Economists: Bitcoin Fails to Become Global Decentralized Digital Currency, BTC's Fair Value Is Still ZeroThe European Central Bank (ECB) has published a blog post claiming that “bitcoin has failed to fulfill its original promise to become a global decentralized digital currency.” The ECB economists who authored the post added that bitcoin’s fair value is still zero and bitcoin transactions are “still inconvenient, slow, and costly.” Moreover, they asserted that […]

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European Central Bank Officials Blast Bitcoin, Say Fair Value of BTC Is ‘Still Zero’ Even After US ETF Approval

European Central Bank Officials Blast Bitcoin, Say Fair Value of BTC Is ‘Still Zero’ Even After US ETF Approval

Officials of the European Central Bank (ECB) are not convinced that Bitcoin (BTC) is a valuable financial asset despite the US approval of a spot exchange-traded fund (ETF) for the flagship cryptocurrency. The ECB is the central bank of European Union (EU) countries that use the euro as their currency. In a new blog post, […]

The post European Central Bank Officials Blast Bitcoin, Say Fair Value of BTC Is ‘Still Zero’ Even After US ETF Approval appeared first on The Daily Hodl.

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European Central Bank Says Crypto Assets May Be Acting As Legitimate Story of Value in New Report

European Central Bank Says Crypto Assets May Be Acting As Legitimate Story of Value in New Report

The European Central Bank (ECB) says that Bitcoin (BTC) and other digital assets have been playing the role of a store of value for many people around the world. In a new report on the global and local drivers of Bitcoin and crypto, the ECB names three things that are driving the adoption of digital […]

The post European Central Bank Says Crypto Assets May Be Acting As Legitimate Story of Value in New Report appeared first on The Daily Hodl.

Top Trader Warns Capitulation Event in Sight for Solana-Based Dogecoin Rival – Here’s His Outlook

Bitcoin is up 170% since the ECB called its ‘last gasp’ at $16.4K

Bitcoin does the complete opposite of what the EU's central bank warned about in late 2022.

Bitcoin (BTC) has gained almost 170% since the European Central Bank (ECB) warned of its impending “irrelevance.”

As noted by crypto proponent Eric Wall and others on Dec.

ECB Bitcoin myopia: "What else are they wrong about?"

Bitcoin traded at just $16,400 when on Nov. 30, 2022, the ECB published a blog post dedicated to its death.

Coming just after the implosion of exchange FTX and subsequent market flight, the post argued that even those levels were a stopping point on the way to new lows.

“The value of bitcoin peaked at USD 69,000 in November 2021 before falling to USD 17,000 by mid-June 2022.

“For bitcoin proponents, the seeming stabilization signals a breather on the way to new heights.

This “last gasp” initially continued to play out.

A year after the ECB’s premature obituary, Bitcoin is at its highest since April 2022 — at $43,800 at the time of writing, or 166% higher than when the bank sounded the alarm, per data from Cointelegraph Markets Pro and TradingView.

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Bitcoin critic, ECB chief Lagarde says her son ‘ignored’ her, lost money on crypto: Report

European Central Bank chief Christine Lagarde reportedly said her son ignored warnings against crypto investments and lost “about 60%” of his money.

European Central Bank (ECB) president and prominent Bitcoin (BTC) critic Christine Lagarde has shared a family story about unsuccessful cryptocurrency investments, according to a report from Reuters.

Lagarde told students at a town hall in Frankfurt on Nov. 24 that her son lost “almost all” of his investments in crypto assets, despite persistent warnings, Reuters reported.

“He ignored me royally, which is his privilege,” Lagarde reportedly declared, adding that he lost “almost all the money he had invested.”

The ECB chief didn’t disclose the sum her son lost, noting that he claimed it wasn't “a lot,” but only “about 60%” of his crypto investments. “So when I then had another talk with him about it, he reluctantly accepted that I was right,” Lagarde reportedly stated, adding:

“I have, as you can tell, a very low opinion of cryptos [...] People are free to invest their money where they want, people are free to speculate as much as they want, (but) people should not be free to participate in criminally sanctioned trade and businesses."

Lagarde is known in the cryptocurrency community for her anti-crypto stance. In 2022, the ECB chief argued that cryptocurrencies are “worth nothing” because the assets are “based on nothing.” In 2021, the ECB president also predicted that central banks worldwide would not be holding Bitcoin anytime soon.

Related: European regulator: CASPs should work on protocol interoperability, self-hosted wallets

While criticizing cryptocurrencies like Bitcoin, Lagarde has emerged as a major fan of the concept of the central bank digital currency (CBDC). In April 2023, Lagarde admitted that a potential digital euro would be used in a “limited” way to control day-to-day payments.

This is a developing story, and further information will be added as it becomes available.

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BIS general manager urges central banks to “lead innovation” for CBDCs

Agustín Carstens called CBDCs the “central element” of central bank leadership in innovation.

Central banks have a responsibility to keep pace with the digital age and lead innovation, Agustín Carstens, general manager of the Bank for International Settlements (BIS), believes.

In his opening remarks at a conference in Basel, Switzerland, on Nov. 8, Carstens called central bank digital currencies (CBDCs) the “central element” of this leadership, elaborating on the potential threats and challenges to implementing them.

One particular challenge is the variety of technological infrastructures different countries intend to develop for their CBDC projects. Carstens also mentioned cyber risks and new possibilities for “criminal activities by unscrupulous actors.”

Related: Central banks want to look under crypto’s hood — Is this a positive sign?

Speaking of the priorities in adapting the CBDCs to potential threats, the official named the flexibility of its design as the number one issue, but he also mentioned privacy problems:

“Maintaining an appropriate level of privacy, for example, will be crucial to ensuring public acceptance of retail CBDCs.”

Carstens pledged BIS support for central banks in their efforts to go digital. This support comes primarily from the BIS Innovation Hub and Cyber Resilience Coordination Centre.

The former has been active recently, participating in numerous digital currency projects. It is helping the Swiss National Bank to develop a wholesale CBDC, as well as helping to build a joint platform with the central monetary authorities of China, Hong Kong, Thailand and the United Arab Emirates and developing a proof-of-concept for a transactions tracker with the European Central Bank, among numerous other projects.

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