Will the digital euro come in 2024 or will Bitcoin be accepted by the ECB
So far there are nothing more than vague basics, moderately optimistic plans and a lot of ambiguity when it comes to the digital euro. At times you could even say that the issue of the digital euro is handled quite mysteriously at the ECB. BaFin is dealing with the issue of digital currencies more transparently. At least when it comes to cryptocurrencies. Our country’s top financial supervisory authority only recently warned against Bitcoin ETFs and generally sees no intrinsic value in cryptocurrencies.
But how will 2024 change regulators’ view of whether spot crypto ETFs will become widely available in the US? Isn’t the ECB’s development of a state-regulated coin a counter-proposal to the decentralized approach of Bitcoin & Co?
How would developments be influenced if the dreaded Bitcoin could be traded on the stock exchanges, at least in the USA, and billions if not trillions of USDcause a real earthquake if they flow into the market practically overnight?
The world of money is changing
Anyone who wants to transfer money privately can currently do so without interference from the ECB. But that could change radically with the development of a digital euro. So far, the ECB has been printing banknotes and setting interest rates. Banks and financial institutions handle normal money transfers. They manage their customers’ accounts, issue debit and credit cards and grant loans or carry out online currency exchange.
You could now ask yourself why people still need central bank money when things have been going well without it so far. The digital euro should also come and be used like virtual cash. Cash in the real world is becoming increasingly less important as people increasingly use digital technologies and digital currencies to pay.
Is the Digital Euro just PR?
What does the current situation at the ECB actually look like with regard to a digital euro? Well, no one knows for sure except the parties involved. There has been radio silence from the planning groups for months and there is (almost) a complete lack of updates on the latest status of the development. The last sign of life is from 10/18/23 and on the ECB website to find.
There you can read that after a two-year investigation phase into the design and provision of a digital euro, the starting signal for the preparation phase has now been given. With this preparatory phase, the Governing Council wants to lay the foundation for a possible digital euro and pave the way for a possible future decision on issuing a digital euro.
There is a lack of concrete statements, as we were used to from the ECB in the past regarding its own, centrally controlled, central bank money. Apparently nothing is changing in the European Central Bank’s stalling tactics.
The next phase of the digital euro project – the preparatory phase – begins on November 1, 2023 and is initially scheduled to last two years. In this phase, the framework for the digital euro will be finalized and providers will be selected that could develop a platform and infrastructure for a digital euro. This phase will also test and test how a digital euro can be developed that meets both the requirements of the Eurosystem and the needs of users. For example, in terms of user experience, data protection, financial inclusion and ecological footprint. source
Difference SEC and ECB
The two authorities work closely together in many ways, but there are also major differences. In the public perception, the SEC is initially seen as significantly more powerful than BaFin. However, this is probably only because the fines or settlement amounts imposed by the US Securities and Exchange Commission are often far higher than the usual fines here.
But apart from the competencies that are perceived differently in the media, things look completely different behind the scenes. Both authorities show themselves to be competent institutions to regulate the financial markets of their country or the confederation of states. BaFin’s supervisory practice is comparable to the tasks of the SEC. For example, both authorities oversee the capital markets and monitor securities issuers.
However, the SEC is equipped with more extensive powers than the ECB in this country. In the USA, it is allowed to punish violations of the rules and, among other things, track investment fraud. BaFin does not have these tasks, as under German law only the law enforcement authorities are responsible for capital fraud crimes. In addition, the SEC is allowed to sue in civil courts, which is then widely reported in the public media.
ECB warns of Bitcoin’s irrelevance
Just a few days ago, the ECB once again announced what it thought of Bitcoin and other cryptocurrencies. Referring to a statement that those responsible made shortly after the FTX quake last year, some Twitter users, now X-Users, became aware of the old post and made fun of it given the price increase of around 170%.
Other users took the old post as an opportunity to make fun of the ECB. Given the large price gains, it is not surprising that no one believes that the ECB is right in its statement that Bitcoin is on the way to insignificance.
this really is as good as it gets
if they’re this wrong about this, what else are they wrong about?
— Alex Thorn (@intangiblecoins) December 4, 2023
Does the ECB accept Bitcoin?
It can be assumed that in the near future the ECB will hardly be able to change from its current position Anti-cryptocurrency course could differ. Even if the authority and the whole of Europe would actually like it to be recognized here too how great Bitcoin and other cryptocurrencies are. Not only that, with this attitude, Europe is unlikely to convince innovative companies in the industry to settle there. There is also a clear lack of competence when you look at Europe in comparison to other countries.
The ECB would do well to open up to the inevitable. But instead of a modern approach, there are only defiant stalling tactics with flimsy planning groups. The really important companies have long been far away from Europe and will probably provide the USA with unprecedented new liquidity on the capital markets by the beginning of 2024.
Any crypto enthusiast who is even remotely interested can imagine what that would mean for the Bitcoin price. Unfortunately, we will not be able to see the faces of those responsible for the ECB when the first Bitcoin ETF will be tradable on the stock exchanges in the USA. Investors from Germany have no access to this interesting financial instrument anyway. However, you can convert Bitcoin ETF tokens into one new cryptocurrency invest, which was aligned with the real development of crypto ETFs in the USA.
Conclusion: The ECB will probably have to admit defeat at some point. Unless she actually has an idea of what a digital euro could look like in the foreseeable future. We don’t need this central bank money and real crypto supporters will categorically reject it anyway because of its centralization and state control.
The SEC could achieve a historic image change next year if it abandons its previous opposition to cryptocurrencies and takes control of Bitcoin ETFs fully collateralized by Bitcoin.
Apparently the world can live with this compromise of a regulated, decentralized financial instrument for now. Institutional investors, in the US at least, are ready to pump billions and probably even trillions of USD into the crypto market.
Your capital may be at risk. This website is not intended for use in any jurisdiction where the trading or investing described is prohibited and should only be used by persons and in a manner permitted by law. Your investment may not be eligible for investor protection in your country or state of residence. Do your own due diligence. This website is available to you free of charge. We may receive commission from the companies we feature on this website.
about the author: Stefanie Herrnberger works as a freelance speaker and editor as well as content creator. Her many years of professional experience in the areas of blockchain, cryptocurrencies and NFTs offer her the perfect background to report on current news and developments on decentralized and centralized financial markets. Stefanie has been investing in cryptocurrencies for several years. She understands the challenges and opportunities for crypto traders.
Publications: https://de.cryptonews.com/editors/stefanie-herrnberger website: https://blockchain-technologie.digital/ Facebook group: https://www.facebook.com/groups/cryptonewsde/