European Lawmakers Silent on US Bitcoin Reserve Amid Digital Euro Push
European lawmakers have yet to respond to the US Strategic Bitcoin Reserve order, despite its significance in favoring early adopters of Bitcoin. According to Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum, this silence may signal a lack of European Bitcoin reserve-related efforts due to the lengthy process of adding new national reserve assets. The European Central Bank (ECB) has historically been critical of Bitcoin as a reserve asset, which may be contributing to the lack of response.
Meanwhile, European lawmakers are pushing ahead with the launch of the digital euro, a central bank digital currency (CBDC), expected in October 2025. ECB President Christine Lagarde has emphasized that the CBDC will coexist with cash and offer privacy protections to address concerns about government overreach. This approach stands in contrast to the US, which is taking a firm stance against CBDCs. The digital euro's rollout presents payment infrastructure concerns, with critics raising concerns about surveillance capabilities and the potential for government overreach.
European Consumers Reluctant to Adopt Digital Euro
Following the CBDC, a recent European Central Bank (ECB) survey of 19,000 respondents across 11 euro-area countries found that Europeans have little interest in adopting a digital euro. When asked to hypothetically allocate 10,000 euros, Europeans allocated only a small portion to the digital euro, preferring traditional liquid assets like cash and savings accounts. The study suggests that consumer habits and a lack of perceived benefits are significant hurdles to the adoption of a digital euro.
The ECB study found that Europeans were receptive to video-based education and training on central bank digital currencies (CBDCs). Educating the masses with CBDC-related video information could help with the widespread adoption of the digital euro. But the question remains, what is the CBDC actually for? And do people really want it?
European Banks Underestimating Crypto Demand
A recent survey by Bitpanda found that less than 20% of European banks offer crypto services despite growing investor demand and regulatory clarity. The study surveyed 10,000 retail and business investors across 13 European countries and found that more than 40% of business investors already hold cryptocurrencies, with another 18% planning to invest in the near future.
The survey suggests that financial institutions without cryptocurrency integrations risk losing significant revenue share from both businesses and retail investors. Only 19% of surveyed financial institutions offer crypto services, while 28% expect crypto to become more relevant within the next three years. Bitpanda's deputy CEO, Lukas Enzersdorfer-Konrad, warns that financial institutions that delay integrating crypto services risk losing revenue to their competition or crypto native companies.
BlackRock's European Bitcoin ETP Marks Key Moment for Institutional Adoption
BlackRock's launch of its European Bitcoin exchange-traded product (ETP) is a significant step towards Bitcoin's institutional adoption in Europe. Although analysts at Bitfinex expect lower inflows than its US counterpart, the product is seen as a key moment for Bitcoin's growing global adoption. The ETP, which began trading on March 25, is a major step in bringing Bitcoin exposure to European investors, despite its smaller market and limited liquidity.
BlackRock's global reputation and expertise may "gradually build momentum" for European Bitcoin ETPs, according to Iliya Kalchev, dispatch analyst at Nexo. While the European fund may not replicate the explosive growth of its US Bitcoin ETF, it should be seen in context, not as a red flag.
Binance and Kraken Delist Non-MiCA-Compliant Tokens in the EEA
Binance has discontinued spot trading pairs with several non-MiCA-compliant tokens, including Tether's USDt, in the European Economic Area (EEA) to comply with the Markets in Crypto-Assets Regulation (MiCA). This move aligns with a plan disclosed in early March and a local requirement to delist such tokens by the end of the first quarter of 2025. Other exchanges, such as Kraken, have also delisted spot trading pairs in tokens like USDT in the EEA.
Although spot trading pairs for non-MiCA-compliant tokens have been delisted, users in the EEA can still custody the affected tokens and trade them in perpetual contracts. This is in line with a previous communication from MiCA compliance supervisors, who stated that custody and transfer services for non-MiCA-compliant stablecoins do not violate the new European cryptocurrency laws. Binance and Kraken's move to maintain custody services for these tokens has clarified the MiCA requirements for European crypto asset service providers.
March was marked by the discomfort caused by the US tariffs against the whole world. Both stocks and cryptocurrencies are experiencing volatile times. Hopefully, things will settle down in the future and these day-to-day changes will pass.