European sanctions against Russia are impacting small European exporters, particularly in Italy, more severely than Russia itself, according to Ferdinando Pelazzo, president of the Italian-Russian Chamber of Commerce. Small and medium-sized enterprises (SMEs) are struggling with disrupted payment systems and logistical challenges due to the sanctions. Italian businesses heavily reliant on Russian markets now face…
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Bitcoin’s rise is enriching early adopters at the expense of society, according to a paper by European Central Bank (ECB) economists. They argued that bitcoin’s speculative growth leads to wealth redistribution, where early investors gain while non-holders and latecomers are left poorer. Economists warn this dynamic could harm societal stability, deepening inequality and threatening democracy…
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Bitcoin could reach six figures sooner than expected, driven by surging institutional flows into exchange-traded funds (ETFs), economic instability, and the U.S. presidential election, according to the chief investment officer of asset management firm Bitwise. The executive highlights factors like growing GOP support for cryptocurrencies and inflation concerns pushing investors toward BTC. With regulatory clarity…
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A recent study part of the European Central Bank (ECB) working paper series has concluded that stablecoins are susceptible to shocks derived from U.S. monetary policy changes. Contractionary shocks make stablecoins react negatively, being even more relevant than traditional crypto shocks to stablecoins, while money market funds (MMFs) thrive. ECB Paper: Stablecoins Are Susceptible to…
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Skepticism about the digital euro is strong in Germany, especially among older citizens who prioritize privacy and security in financial transactions. Many Germans remain resistant to the idea of a digital currency, with about half unable to imagine using it. Bundesbank President Joachim Nagel has called cash “sacred” in Germany, reflecting deep-rooted concerns about losing…
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The European Central Bank (ECB) has published its first progress report on the digital euro preparation phase, highlighting key design features and ongoing developments. The report emphasizes high privacy standards for both online and offline payments, aiming to provide users with a cash-like level of privacy. First Progress Report on the Digital Euro Preparation Phase…
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The 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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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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The 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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The European Central Bank (ECB) has responded to concerns from financial institutions regarding the central bank digital currency’s (CBDC) role. ECB’s report emphasized that “a digital euro will be designed as a means of payment and not for investment.” Three ECB Executive Board members Piero Cipollone, Ulrich Bindseil and Jürgen Schaaf cleared banks’ fears on…
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