1. Home
  2. European Union

European Union

Survey: 65% of Spaniards aren’t interested in using digital euro

Coin Telegraph
Survey: 65% of Spaniards aren’t interested in using digital euro
CBDC

The country’s population doesn’t demonstrate as high a confidence level in the European Central Bank’s digital currency project as the government does, according to the survey.

As the Bank of Spain embraces the potential adoption of a digital euro, the country’s population doesn’t appear to have the same strong appetite for the European Central Bank’s digital currency project. 

This emerges from the results of a survey published by the Bank of Spain entitled “Study on the habits in use of cash.” The survey was conducted by Ipsos on two groups, totaling 1,600 respondents: the general public and the representatives of small businesses. It also included questions on the digital euro, a potential pan-EU central bank digital currency (CBDC).

The study revealed that only 20% of the general public knows about a “digital euro.” The number among small businessmen is roughly the same, 23%. However, this question was posed in 2022.

Related: EU data protection regulators urge anonymity for smaller transactions in digital euro

In 2023, only 20% confirmed that they would use the digital euro to complement their regular payment methods, while 65% said they would not. A year ago, these numbers favored the CBDC more: in 2022, only 58% responded with a “No” to that question.

The age group showing the most enthusiasm for the digital euro is the youth (18-24) — 36% of this cohort said they would use the currency. This proportion gradually declines in age progression: 31% among the age 25-34, 24% among the age 35-44, 18% among the 55-64, and only 7% for those older than 65.

In October, the Bank of Spain published a text explaining the nature and uses of the digital euro. The bank claimed that the physical cash format “does not allow to exploit all the advantages offered by the growing digitalization of the economy and society.” However, the digital euro will make electronic payments a vital piece of the financial system.

Spain has recently demonstrated its firm commitment to the EU cause regarding the digital economy, and has decided to implement the Markets in Crypto Assets (MiCA), a pan-EU crypto framework, six months earlier than the general deadline demands.

Magazine: Slumdog billionaire. Incredible rags-to-riches tale of Polygon’s Sandeep Nailwal

Read more
<div>FTX creditors only getting '10-25% of their crypto back' — creditor</div>

FTX creditors only getting ’10-25% of their crypto back’ — creditor

Spain to implement MiCA six months ahead of July 2026 deadline

Coin Telegraph
Spain to implement MiCA six months ahead of July 2026 deadline
Coin Telegraph

The country said EU crypto rules will come into force in December 2025, ahead of the general deadline for implementing MiCA for all 27 member states of the EU.

The Spanish Ministry of Economy and Digital Transformation reported that the first comprehensive European Union crypto framework, the Markets in Crypto-Assets (MiCA) Act, will come into force on a national level in December 2025.

As follows from the release published by the Ministry on Oct. 26, the first vice president of Spain, Nadia Calviño, has met with the president of the European Securities and Market Authority, Verena Ross, to discuss the government’s intention to advance the implementation of MiCA.

Related: Europe’s AML regulations come at a high cost — For your privacy and otherwise

The general deadline for implementing MiCA for all 27 member states of the EU is July 2026. It includes the 36-month transitional period given to the member states since the date of the publication of the MiCA in the Official Journal of the European Union in June 2023. Spain wants to shorten that transition period to 18 months. According to the release:

“[This] will provide legal certainty and greater protection for Spanish investors in this type of assets.” 

Meanwhile, large international crypto exchanges in Spain have been granted local licenses. In September, Coinbase secured an Anti-Money Laundering compliance registration from Spain’s central bank, and Kraken attained a virtual asset service provider registration. Earlier, in June, the same regulatory approval was granted to Crypto.com.

This month, Banco de España, Spain’s central bank, publicly joined a chorus of European banking institutions preparing their customers for the potential benefits of a digital euro. The bank claimed that the physical cash format “does not allow to exploit all the advantages offered by the growing digitalization of the economy and society.”

Magazine: Ethereum restaking: Blockchain innovation or dangerous house of cards?

Read more
<div>FTX creditors only getting '10-25% of their crypto back' — creditor</div>

FTX creditors only getting ’10-25% of their crypto back’ — creditor

G7 countries to launch AI code of conduct: Report

Coin Telegraph
G7 countries to launch AI code of conduct: Report
Canada

The Group of Seven (G7) countries will agree on a voluntary AI code of conduct for companies developing AI to reference for mitigating risks and benefits of the technology.

The Group of Seven (G7) industrial countries are scheduled to agree upon an artificial intelligence (AI) code of conduct for developers on Oct. 30, according to a report by Reuters. 

According to the report, the code has 11 points that aim to promote “safe, secure, and trustworthy AI worldwide” and help “seize” the benefits of AI while still addressing and troubleshooting the risks it poses.

The plan was drafted by G7 leaders in September. It says it offers voluntary guidance of actions for “organizations developing the most advanced AI systems, including the most advanced foundation models and generative AI systems.”

Additionally, it suggests that companies should publicize reports on the capabilities, limitations, use and misuse of the systems being built. Robust security controls for said systems are also recommended.

Countries involved in the G7 include Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and the European Union.

Cointelegraph has reached out to the G7 for confirmation of the development and additional information.

Related: New data poisoning tool would punish AI for scraping art without permission

This year’s G7 took place in Hiroshima, Japan, with a meeting held between all participating Digital and Tech Ministers on April 29 and 30.

Topics covered in the meeting included emerging technologies, digital infrastructure and AI, with an agenda item specifically dedicated to responsible AI and global AI governance.

The G7’s AI code of conduct comes as governments worldwide are trying to navigate the emergence of AI with its useful capabilities and concerns. The EU was among the first to establish guidelines with its landmark EU AI Act, which had its first draft passed in June.

On Oct. 26, the United Nations established a 39-member advisory committee to tackle issues related to the global regulation of AI.

The Chinese government also launched its own AI regulation, which began to take effect back in August.

From within the industry, the developer of the popular AI chatbot ChatGPT, OpenAI, announced that it plans to create a “preparedness” team that will assess a range of AI-related risks.

Magazine: AI Eye: Get better results being nice to ChatGPT, AI fake child porn debate, Amazon’s AI reviews

Read more
<div>FTX creditors only getting '10-25% of their crypto back' — creditor</div>

FTX creditors only getting ’10-25% of their crypto back’ — creditor

How major German firms like Mercedes and Lufthansa are using NFTs

Coin Telegraph
How major German firms like Mercedes and Lufthansa are using NFTs
Coin Telegraph

German brands embrace NFTs, exploring new ways to engage with customers and build brand loyalty.

For the most part, nonfungible tokens (NFTs) have two primary use cases: Buying and selling digital products (digital art, virtual fashion items) and building digital communities (exclusive memberships, access to events). 

These use cases can be easily adopted by brands and companies, such as fashion brands selling digital clothes, various companies offering NFT-based club memberships and musicians holding exclusive concerts for their fans.

Traditional German companies are also jumping on the bandwagon, recognizing the potential of NFT technology to innovate and market their products and services.

Deutsche Post combines NFTs and AI

Deutsche Post, the German postal service, will release its first limited-edition collectible stamp on Nov. 2, 2023. A classic self-adhesive stamp will come with a digital image — an NFT representing ownership of the stamp.

The first stamp features a pixellated image of the Brandenburg Gate generated by artificial intelligence (AI). Upcoming stamps in the collection will feature other iconic German landmarks.

It remains to be seen whether the NFT stamp collection will be a commercial success. However, it is a significant step for Deutsche Post, which is looking to expand its reach into the digital world.

Lufthansa takes to the skies with NFT art

NFTs can also be used for various loyalty programs, offering customers a more rewarding and engaging experience while providing businesses with a new way to connect with their customers and build brand loyalty. 

An example of such a program is Lufthansa’s NFT loyalty program on the Polygon network. In collaboration with Lufthansa Innovation Hub and Miles & More, its frequent flyer program, Lufthansa has developed the Uptrip mobile application that allows passengers to turn their travel experiences into NFTs. These NFTs can then be redeemed for rewards such as mileage bonuses and business lounge vouchers.

According to Christopher Siegloch, head of program development and services at Miles & More, the app has already generated significant interest among Lufthansa customers. Since its launch, over 20,000 users have registered, and more than 200,000 collectible cards have been issued. Siegloch highlights that gamification elements play a crucial role in introducing participants to Web3 technologies like NFTs, and the app successfully translates the enthusiasm for collecting into the digital realm.

Furthermore, in the second half of 2023, the app will introduce a digital marketplace where users can trade and sell their NFTs, with special NFT reward offers planned for the future.

Adidas and Hugo Boss reimagine fashion

NFTs are also reaching out to fashion brands. For example, German apparel company Adidas continues to refine its Web3 strategy by actively using NFTs to find new ways to engage with its community of athletes, sneakerheads and sports enthusiasts. 

Recently, Adidas introduced a series of limited-edition NFT sneakers inspired by their iconic footwear designs. These digital sneakers can be showcased in virtual environments, allowing users to express their love for the brand in the metaverse.

Recent: How Google’s AI legal protections can change art and copyright protections

Adidas is also discovering new ways to use the full potential of NFT to encourage its community. The last example is The Adidas /// Studio, or Triple Stripes Studio, which launched a Web3-based digital artist-in-residency program to showcase and support budding creators in the NFT space. According to Adidas, the goal is to support and nurture creative talents in the digital realm, providing artists with an opportunity to showcase their work and collaborate with the sportswear giant. This collaboration extends beyond digital projects and may include physical products in the future.

Another German fashion brand, Hugo Boss, has also entered the NFT arena with a focus on fashion in the metaverse. The company collaborated with renowned digital fashion designers to create a series of exclusive NFT clothing items. These digital fashion pieces can be worn by avatars in virtual worlds, allowing users to dress in style even in the digital realm.

Mercedez-Benz digitalized its history

Mercedes-Benz boasts a rich history spanning more than 130 years, attracting a dedicated following of nostalgia enthusiasts and collectors. The brand’s iconic models, vintage cars and related artifacts, whether in their original form or as miniature models and toys, continue to hold appeal. In line with its strategic direction, the German automaker is venturing into the Web3 space through the launch of Mercedes-Benz NXT to enhance its engagement with the community.

In September, Mercedes-Benz launched its third NFT collection: The Era of Luxury. These collectibles created by Mercedes-Benz NXT Icons are digital reinterpretations of the most remarkable designs from seven design eras. The collection spans from the present day to the early history of automobiles.

All three NFT collections show how Mercedes-Benz actively explores opportunities to blend the digital realm with automotive design. This endeavor is spearheaded by the brand’s chief design officer, Gorden Wagener, who guides the Mercedes-Benz design team in creating digital collectibles. The primary objective is to reinterpret the brand’s most iconic designs, presenting them in the digital format of NFT cards. 

Ritter Sport, Haribo and Katjes create sweet NFTs

Ritter Sport, a German chocolate brand, also ventured into the NFT world by launching a limited series of digital chocolate bars as NFTs in August 2023. The NFT collection is called Art of the Square and consists of 256 digital pixel art pieces, each depicting a square Ritter Sport bar.

Not only Ritter Sport uses such creative marketing strategies to engage with a tech-savvy audience. Other German food brands have also released their NFT collections. For example, confectioner Katjes released its NFT collection of three unicorn babies named Dash, Willow and Sparkles in April 2023. 

This was Katjes’ second NFT campaign after releasing a limited-edition collection of 777 unicorn NFTs in May 2022. Both campaigns were a way for Katjes to reach a younger audience, as unicorn babies are a popular character among children and teenagers.

Magazine: Ethereum restaking: Blockchain innovation or dangerous house of cards?

Haribo, a German confectionery company famous for its gummy bears, has also entered the NFT world. In April 2023, the company filed for NFT trademarks in the United States, indicating its plans to expand its brand into the digital world. The trademarks cover a wide range of digital assets, including digital avatars, multimedia files with confectionery-related artwork, cartoons and other items authenticated by NFTs.

Adidas, Haribo, Lufthansa, Deutsche Post and other traditional German brands have joined the growing list of businesses venturing into the NFT space. This expansion marks a significant shift in the perception of NFTs, as they are no longer viewed solely as a niche investment opportunity. 

Instead, NFTs are increasingly being seen as a mainstream marketing tool and a way to experiment with new concepts that bridge the virtual and physical worlds and build new communities.

Read more
<div>FTX creditors only getting '10-25% of their crypto back' — creditor</div>

FTX creditors only getting ’10-25% of their crypto back’ — creditor

Bank of Spain embraces ‘digital euro,’ explains its benefits

Coin Telegraph
Bank of Spain embraces ‘digital euro,’ explains its benefits
CBDC

The digital euro will make electronic payments a vital piece of the financial system, the statement claims.

Banco de España, Spain’s central bank, has joined a chorus of European banking institutions preparing their customers for the potential benefits of a digital euro. The central bank published a short text on Oct. 19 explaining the nature and uses of the European Union’s potential central bank digital currency (CBDC).

The bank claims that the physical cash format “does not allow to exploit all the advantages offered by the growing digitalization of the economy and society.” However, the digital euro will make electronic payments a vital piece of the financial system.

The authors highlight the possibility of offline payments within the digital euro, emphasizing its level of privacy, equivalent to cash. They also make reservations that in the online form, users’ data would still be visible only to their particular financial institutions and not the CBDC infrastructure provider, Eurosystem.

Related: EU data protection regulators urge anonymity for smaller transactions in digital euro

According to the project calendar published in the text, the current “preparation phase,” launched on Oct. 18, will finish by 2025. However, the final decision on the issuance of the pan-EU CBDC still wasn’t made.

The Bank of Finland recently expressed the same amicable sentiment towards the digital euro. Its board member, Tuomas Välimäki, called it “the most topical project” in the European payment sector.

On Oct. 25, the European Central Bank (ECB) shared a link to the landing page dedicated to basic information about the digital euro. It promises to deliver an “easier life” and a “stronger Europe.”

Earlier this month, the governing council of the ECB announced the beginning of the ”preparation phase” for the digital euro project. It will last two years and focus on finalizing rules for the digital currency and selecting possible issuers.

Magazine: 6 Questions for Adelle Nazarian on crypto, journalism and the future of Bitcoin

Read more
<div>FTX creditors only getting '10-25% of their crypto back' — creditor</div>

FTX creditors only getting ’10-25% of their crypto back’ — creditor

Regulators around the globe assert more control over crypto: Law Decoded

Coin Telegraph
Regulators around the globe assert more control over crypto: Law Decoded
Coin Telegraph

From Hong Kong to Europe and the United States, regulators are pushing for more oversight and control over digital assets.

In the last week, several major financial regulators, both national and international, simultaneously produced new guidelines for decentralized assets. The European Banking Authority and the European Securities and Markets Authority proposed guidelines for assessing the suitability of management members in crypto firms, offering standardized criteria for evaluating their knowledge, expertise, integrity and ability to dedicate adequate time to fulfill their responsibilities.

The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) proposed to oblige banks to provide both quantitative and qualitative data on exposures to crypto assets and the corresponding capital and liquidity requirements. According to the BIS, using a uniform disclosure format will encourage the application of market discipline and lessen information asymmetry between banks and market participants.

The United States Treasury Department’s Financial Crimes Enforcement Network proposed designating cryptocurrency mixing as an area of “primary money laundering concern” following Hamas’ attack on Israel. It suggests requiring domestic financial institutions and agencies to “implement certain recordkeeping and reporting requirements” for crypto mixers transactions.

The Hong Kong Securities and Futures Commission (SFC) will make certain digital currency products available only to professional investors. The updated requirements consider digital assets “complex products” under the SFC and subject to the same guidelines as similar financial products. The commission mentions crypto exchange-traded funds and products issued outside Hong Kong as complex products.

FTX court updates 

FTX’s former general counsel Can Sun was unaware of the exchange’s comingling of funds with Alameda Research, he told jurors during his testimony in Sam Bankman-Fried’s criminal trial. Sun said he learned from other employees about Alameda’s exemption from the liquidation engine system in August 2022. Typically, the system would liquidate loss-making trades, but Alameda reportedly bypassed the mechanism due to its exception.

Accounting professor Peter Easton provided a breakdown of the alleged commingling of funds between FTX and Alameda Research since 2021. According to Easton’s analysis, Alameda invested in Genesis Capital, K5 Global Holdings, Anthropic PBC, Dave Inc, Modulo Capital and other ventures, partially using funds from FTX customers. In June 2022, Alameda had a negative balance of $11.3 billion with FTX, while the companies’ liquid assets stood at $2.3 billion, meaning a gap of $9 billion between the sister firms. Another critical point from the analysis: Alameda has 57 accounts with FTX that could have negative balances, whereas no other customer could do so. The analysis challenges Bankman-Fried’s defense argument that Alameda had similar privileges as other market makers on FTX.

Continue reading

Pennsylvania aborts two-year mining moratorium bill 

A Pennsylvania House Representative has cut a two-year crypto mining ban from a bill to regulate the sector’s energy consumption, claiming trade labor unions pressured the change. The committee’s chair and the bill’s sponsor, Democratic Representative Greg Vitali, revealed that Democratic Party leaders pressured him not to run the bill inclusive of the moratorium. Vitali said building trade labor unions had “chronic opposition” to environmental policy and claimed the unions had his Democratic colleagues in their pocket. According to the politician, voting against the unions would risk the Democratic majority in Pennsylvania’s House, and he would rather see the bill pass sans moratorium than not at all.

Continue reading

Gemini, Genesis, DCG accused of $1 billion fraud

New York’s attorney general has filed a lawsuit against cryptocurrency firms Gemini, Genesis and Digital Currency Group (DCG) for allegedly defrauding investors through the Gemini Earn investment program. An official statement from the office of Attorney General Letitia James outlines the basis of the charges, claiming that the companies defrauded more than 23,000 investors, including 29,000 New York citizens, of more than $1 billion. An investigation carried out by James’ office claims that Gemini lied to investors about its Gemini Earn investment program, which it ran in partnership with Genesis. It argues that while Gemini had assured investors that the program was a low-risk investment, investigations reveal that Genesis’ financials “were risky.”

Continue reading

Read more
<div>FTX creditors only getting '10-25% of their crypto back' — creditor</div>

FTX creditors only getting ’10-25% of their crypto back’ — creditor

Greece establishes AI advisory committee to create national strategy

Coin Telegraph
Greece establishes AI advisory committee to create national strategy
Coin Telegraph

The Greek prime minister created an AI advisory committee comprising some of the country’s top tech, ethics and science professionals.

Greek Prime Minister Kryiakos Mitsotakis announced the establishment of an advisory committee to create a national strategy for artificial intelligence (AI) in Greece on Oct. 19.

The Greek government said the “exponential pace” of AI development has created the necessity for an advisory committee under the country’s prime minister. The object of the committee is to prepare Greece for the developments and applications of the technology.

Mitsotakis commented on the establishment of the commission, saying the reception of the technology must be organized before it becomes a daily reality. “This is not about the future but the present,” he said.

The commission will be led by Constantinos Daskalakis, a professor of computer science at MIT, and has professionals in related fields such as technology, ethics, law and science. It also includes Greek researchers and scientists, a part of the diaspora living outside of Greece.

Daskalakis commented on the initiative, saying:

“We will also work in a coordinated manner so that Greece can be a member of the international initiatives for Artificial Intelligence that are being developed within the framework of the International Organization of Artificial Intelligence.”

Related: How Bitcoin ATMs in Greece fare during a record-breaking tourist season

A central component of the advisory committee will also be formulating policy recommendations and creating guidelines for a long-term national strategy.

According to the announcement, the AI strategy will include considering its impact on the economy and society, improving productivity, increasing innovation and strengthening local infrastructure, among other things.

Greece is among the 27 member states of the European Union that would be subject to the EU’s forthcoming EU AI Act. 

Earlier in October, EU officials announced that they are considering even more restrictive regulations for large AI models such as OpenAI’s ChatGPT and Meta’s Llama 2.

Magazine: ‘AI has killed the industry’: EasyTranslate boss on adapting to change

Read more
<div>FTX creditors only getting '10-25% of their crypto back' — creditor</div>

FTX creditors only getting ’10-25% of their crypto back’ — creditor

Binance shutting down European Visa debit card in December

Coin Telegraph
Binance shutting down European Visa debit card in December
Binance

Mastercard ended its partnership in Latin America and Bahrain with Binance in September, possibly due to the regulatory environment.

Binance Visa debit card services will close down in the European Economic Area (EEA) on December 20, according to an announcement by the cryptocurrency exchange on Oct. 20. Binance accounts will be unaffected.

According to a Binance letter to customers posted online, the Binance card issuer, Finansinės paslaugos “Contis” — or Contis Financial Services — will stop issuing the card. Contis is a Lithuanian electronic money institution and currency exchange operator owned by German banking-as-a-service platform Solaris Group, which is active in 30 European countries.

The Binance Visa debit card converts crypto in users’ Binance accounts into local currencies, thus allowing them to use crypto to pay for purchases in stores and online. The EEA comprises all 27 European Union member states and Iceland, Liechtenstein and Norway.

The Binance Visa debit card was introduced in the EEA in September 2020. At the time, there were plans to introduce Binance cards in Russia and potentially the United States as well. A Binance spokesperson told Cointelegraph in a statement:

"Although Binance users from around the world have enjoyed using [the Binance Visa debit] Card to make day-to-day payments with crypto assets, only around 1% of our users are impacted by this change."

The closure of the Binance Visa service is the latest in a string of setbacks for Binance. The end of Binance Visa card services was announced a day after the exchange restored euro deposits and withdrawals, which had been unavailable for a month after payments processor Paysafe dropped the exchange. Binance is still not onboarding new users in the United Kingdom due to the loss of a third-party service provider.

Related: Visa taps into Solana to widen USDC payment capability

Binance.US suspended U.S. dollar deposits in June and warned that withdrawals would also be suspended. It partnered with MoonPay to enable U.S. users to buy Tether (USDT) on the exchange. It announced earlier this week that U.S. customers could withdraw dollars from their accounts by converting the fiat into stablecoin.

Mastercard ended its partnership with Binance in Argentina, Brazil, Colombia and Bahrain in September. At the time, regulatory scrutiny was suggested as the motivation for the breakup.

Magazine: Ripple, Visa join HK CBDC pilot, Huobi accusations, GameFi token up 300%: Asia Express

Read more
<div>FTX creditors only getting '10-25% of their crypto back' — creditor</div>

FTX creditors only getting ’10-25% of their crypto back’ — creditor

European Banking Authority, ESMA issue crypto entity suitability guidelines

Coin Telegraph
European Banking Authority, ESMA issue crypto entity suitability guidelines
Coin Telegraph

The joint guidelines include granting authorization for ART and CASP issuance and conducting prudential assessments for potential acquisitions.

The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) on Oct. 20 jointly released a consultation paper featuring two drafts. These drafts encompass the assessment of the suitability of management body members and shareholders or members holding qualifying stakes in issuers of asset-referenced tokens (ARTs) and crypto-asset service providers (CASPs).

The proposed joint guidelines for evaluating the suitability of shareholders or members, whether direct or indirect, holding qualifying stakes in ART or CASP issuers, offer regulatory bodies a shared approach for assessing their suitability. This includes granting authorization for ART and CASP issuance and conducting prudential assessments for potential acquisitions.

However, the proposed joint guidelines for assessing the suitability of management body members in ART and CASP issuer firms offer standardized criteria for evaluating their knowledge, expertise, integrity and ability to dedicate adequate time to fulfill their responsibilities.

Screenshot of the consultation paper.             Source: The European Banking Authority

To nurture and safeguard the integrity of the cryptocurrency market and its associated services, and to instill trust, it is crucial to ascertain the suitability of both the management body members of ART and CASP issuers and individuals seeking to hold or acquire qualifying stakes in them.

The guidelines outlined in these drafts aim to offer clarity and standardization in evaluating the suitability of the management body, shareholders, and members holding qualifying stakes. This, in turn, aims to minimize the potential for rule application discrepancies and arbitrage as the consultation period will remain open until Jan. 22, 2024.

Related: European Banking Authority calls for early adoption of stablecoin standards

Anticipating forthcoming regulations, the European Union's banking regulator encouraged stablecoin issuers to voluntarily adhere to specific "guiding principles" related to risk management and consumer protection. The EBA unveiled its initial set of measures for public input on July 12, aiming to elucidate the requirements of the Markets in Crypto-Assets regulation (MiCA), which is slated to be enforced on June 30, 2024.

Magazine: Deposit risk: What do crypto exchanges really do with your money?

Read more
<div>FTX creditors only getting '10-25% of their crypto back' — creditor</div>

FTX creditors only getting ’10-25% of their crypto back’ — creditor

EU data protection regulators urge anonymity for smaller transactions in digital euro

Coin Telegraph
EU data protection regulators urge anonymity for smaller transactions in digital euro
CBDC

The European Data Protection Board and the European Data Protection Supervisor issued a joint opinion statement on the regulation of “digital euro.”

On Oct. 18, the European Data Protection Board (EDPB) and the European Data Protection Supervisor (EDPS) issued a joint opinion statement on the regulation of “digital euro,” proposed by the European Commission in July 2023. The regulators made several recommendations to enhance the personal data protection standards for the European central bank digital currency (CBDC). 

The EDPB and EDPS suggest clarifying the proposed verification procedure for the maximum allowed amount of digital euro held by the individual account. The current draft allows the European Central Bank (ECB) and national central banks to establish a single access point to each user’s data. The EDPB and the EDPS recommend conducting an assessment to determine the necessity and proportionality of a singular access point. They emphasize that employing technical measures for the decentralized storage of these identifiers is feasible.

Related: Finland works on instant payments system, embraces digital euro

The regulators also point out the lack of foreseeability in the proposed fraud detection and prevention mechanism of the CBDC. The EDPB and the EDPS recommend further demonstrating the FDPM’s necessity or, otherwise, considering “less intrusive measures” from a data protection perspective.

The EDPB and the EDPS also “strongly recommend” establishing a 'privacy threshold' for online transactions, below which offline and online low-value transactions are not subject to tracking for anti-money laundering and combating the financing of terrorism (AML/CFT). However, they didn’t come up with a specific amount, referring only to the transaction limit, covering “low-value daily transactions.”

This week, the governing council of the ECB announced the ”preparation phase” for the digital euro project following a two-year investigation. The preparation phase will last two years and focus on finalizing rules for the digital currency, as well as selecting possible issuers.

Magazine: Ethereum restaking. Blockchain innovation or dangerous house of cards?

Read more
<div>FTX creditors only getting '10-25% of their crypto back' — creditor</div>

FTX creditors only getting ’10-25% of their crypto back’ — creditor

WordPress Theme by cactus.com
Close

Share this video