European Central Bank (ECB) recently announced It extended its initiative to resolve transactions between institutions with a wholesaler Central Bank digital currency (CBDC) Payment system.
The initiative will develop in two steps. First, the CBDC settlement platform will develop with a timeline that will soon be announced. Secondly, the ECB will look at more integrated, long -term solutions, including international operations such as currency settlement.
“This is an important contribution to improving European financial market efficiency through innovation,” mentioned ECB’s board member Piero Cipollone, who monitors the initiative. “Our strategy will pay attention to the goal of the Euro system to achieve a more harmonized and integrated European economic ecosystem.”
He added that the ECB “included innovation without compromising with safety and stability.”
For some time, ECB has examined both retail Digital euros And wholesale cross -border between central banks. On Thursday, it confirmed its commitment to support “the use of innovative solutions in his market infrastructure” while maintaining the security and efficiency of his current payment system, the Trans -European automated real -time gross settlement (Target).
The bank said it would “continue to further analyze new technology and actively engage with public and private stakeholders.”
Digital euro development
The digital euro ”Preparation phase“Where was launched on November 1 2023to lay the foundation for the potential issuance of a digital euro.
June 24, 2024, ECB Published The first report on the preparation phase, which included updates on offline functionality, contained boundaries and the tender process for digital eurocomponent suppliers. It also dealt with popular problems around integrity, followed by An ECB blog post June 13 on how to make the digital euro “really private.”
In November 2024 Required partners To test conditional payments in a CBDC simulation to Start in February 2025as well as opening applications for partners who are willing to Explore tokenization and other innovative use cases.
ECB’s latest announcement of the next step of its wholesale CBDC initiative is in sharp contrast to the latest developments in the United States Digital dollars has met much less government enthusiasm than its European counterpart.
Us takes a different rate
Over the Atlantic, the Trump 2.0 administration has set its mark on the banking and digital asset landscape with an almost constant stream of executive order and Official meetings Since January.
Before the election –The second time—Donald Trump consistently made clear he was against any kind of cbdc Or digital dollars.
During a speech in Portsmouth, North Hampshire, in January last year, he promised “Protecting Americans from government board. As your president, I will never allow the creation of a central bank digital currency. “
He claimed that “such a currency would give the federal government our government, the absolute control over your money. They could take your money, and you wouldn’t even know it was gone. This would be a dangerous threat to freedom, and I will prevent it from coming to America. “
In July, he doubled on this feeling and told the BTC 2024 conference in Nashville that at his re-elected he would:
“Decide immediately that Treasury Department and other federal authorities cease and renounce all measures necessary because you know, there is one thing that happens in your industry. They want to move the creation of a central bank digital currency. It’s over. Forget it. There will never be a CBDC while I am president of the United States. And I will always defend the right to self -relationship. “
But incorrectly Trump’s exaggerated fear of a CBDC may be, since he has been responded to the office he has been quick to follow his various promises –or threat– and January 23 signed an executive order prohibit the development of a CBDC in the United States.
This anti-CBDC unit from the executive branch has been reflected by the legislative branch. Last, February 18, Rep. Andy Ogles (R-TN) introduced A bill (HR 1430) to try to make Trump’s effective prohibition on a CBDC permanently by changing the Federal Reserve ACT from 1913 to limit the ability of Federal Reserve Banks to issue the central bank’s digital currency.
This follows several developments last year at both federal and state levels in the same way.
In May, CBDC Anti-Surveillance State Act passed the House of Representatives. If assumed it would – much like rope. OGLE’s legislative proposal – in order to prohibit the Federal Reserve ACT to prohibit the Federal Reserve Banks “from offering certain products or services directly to an individual, to prohibit the use of the central bank’s digital currency for monetary policy and for other purposes.”
At the same time, several states decided to prevent Congress and the second view of the president by developing their CBDC legislation.
In June, Louisiana signed -Governor Jeff Landry A invoice to law prohibiting the state government from accepting or participating in a CBDC. One month later, the North Carolina General Assembly followed after approving a bill that limited the state government from using and accepting a federal reserve issued CBDC.
Whether the US CBDC enmity is motivated or not, a PRO-Digital Access/Anti-CBDC Agenda has been clearly established in Trump 2.0 -Ara, and it stands as yet another differential and potential fighting between the United States and the EU.
Look: Find ways to use CBDC outside digital currencies
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