Financial ministers of European Union member states went Friday on a path to set limits on how much an individual could handle, which would distance Bloc closer to launching a digital bank currency.
The decision was announced during a press of Eurogroup Conference Following a economic and financial council meeting in Copenhagen, Denmark, on Friday. Officials said they came to a consensus on the “ceiling for handling limitations and then eventually the process of releasing itself for the digital euro.”
An official mentioned at the press conference whose discussed methods were the methods for establishing the limitations of handling, rather than the limits themselves. Statements follow the United Kingdom based in Cryptocurrency Industry Advocacy Groups calling on the local central bank not to continue Plans to implement identical limits to stablecoin handling.
A limiting holder for the European Union’s Central Bank Digital Currency (CBDC) Also discussed at European Central Bank’s (ECB) The Development Report on Digital Euro, released by the end of 2024. According to a report by 2024 Politico, the limitations have been a point of dispute between the ECB and the National Central Banks.
Related: Bank of England Mulls Canning CBDC Plan: Report
EU is moving forward with digital euro
Despite a global move towards Stablecoins, the EU appears to be doubling the digital euro efforts. Earlier this month, the ECB changed its pushing to issue a digital euroDrawing pushback from some EU members due to privacy concerns and risks of injury to commercial banks.
ECB board member Piero Cipollone said at the time the system would “ensure that all -europeans could pay all the time with a free, accepted general digital payment method, even with major interruptions.” He also admitted that the bank had “no one knew about paying and paying” and the solution would also work offline. Implementing offline, he claims, “will be as good as cash in terms of maintaining people’s privacy.”
Related: Australia to test CBDCs, Stablecoins in the next phase of Crypto play
EU’s answer to increasing stablecoins
ECB policies have explored the potential to be -controlled of a digital euro for years, but can be forced by the Stablecoin laws and regulations pushed by the Trump administration in the US. In late July, ECB advisor Jürgen SchaaF suggested Digital Euro deployment as one of the strategic options for the European Union to meet the rapid increase of dollars based on the dollar.
Similarly, by the end of May, Fabio Panetta – a former ECB officer and Governor of the Italian bank – also proposed the digital euro as a major tool for alleviating risks Related to increased cryptocurrency adoption. “We will forget that the evolution of crypto-assets can be controlled only by policies and restrictions,” he said, suggesting that the digital euro will be the key to addressing the risks.
Magazine: Crypto wants to overthrow banks, now they turn into the stablecoin fight
