If they decide to launch it, the ECB said users would set up a digital euro wallet through a bank or post office. The digital euro would “complement cash,” by giving customers a free, universally accepted option for how they would like to pay for goods and services. It’s another way of paying with the euro and could be converted into banknotes if needed. The UK has the largest crypto economy among European countries and was ranked third globally. The country’s regulatory environment is also supportive, as is the case with its neighbor France, and London has also been named the most crypto-ready city for businesses in 2023. The war in Ukraine accelerated the arrival of more crypto regulations, but the country did take the first steps into implementing digital currencies back in 2020 when it developed a bill to regulate and legalize cryptocurrencies, which passed in late 2021.
The crypto companies that want to operate in the Netherlands must pass rigorous requirements, but this has proved to be an advantage and why this industry has flourished. Additionally, a high regulatory bar protects the users, keeps lax exchanges at bay, and preserves the integrity of the entire crypto sector. This widespread adoption of cryptocurrencies across Europe signifies a significant shift in the global financial landscape. It highlights the continent’s commitment to innovation and its willingness to embrace emerging technologies that can reshape traditional financial systems. The country has encouraged businesses to accept crypto payments and implemented the MiCA regulations, while simultaneously investing in educational programs for both individuals and businesses.
Its pioneering role in establishing the world’s first stock exchange in 1602 has laid the foundation for a nation known for embracing innovative financial solutions. The US is now participating in a cross-border wholesale CBDC project, Project Agorá, with 6 other major central banks. In May, the US House passed a bill prohibiting the direct issuance of a retail CBDC, but the Senate has not acted. It’s worth noting that one digital euro would still be worth one euro, as it would be tied to the fiat – or physical – eurozone currency.
Still, Indonesian stakeholders and observers have told The Jakarta Post that the plan had a long way to go despite the potential benefits. For this to come about, a large share of the population would need to use the digital euro on a regular basis. It would not be necessary for them to use the digital euro for most of their day-to-day payments. What matters is that such regular use would give people the confidence that they can always use the digital euro for payments if they wanted or needed to. President Joe Biden signed an executive order on March 9 ordering the US Treasury Department, the Commerce Department and other key agencies to prepare reports on “the future of money” with a view to perhaps creating a digital dollar.
This surprising figure highlights the need for accessible financial solutions, which is where CBDCs come in. A CBDC would allow unbanked individuals an easily accessible method for receiving, storing, and sending currency. Commercial banks did not participate in the pilot system, which made it difficult to gage the impact of a CBDC on the banking system. However, the IMF considered that the e-peso had the potential to provide more systematic and transparent information on money demand in real time, which could benefit monetary policy transmission. During its pilot, the central bank revealed it had failed to agree on a business model with payment market participants, due to differences over an appropriate tariff/fee model. The digital currency pilot was therefore completed with a zero-commission model for the time being.
