Digital Euro Won't Replace Cash, ECB Says
The European Central Bank (ECB) has reaffirmed its commitment to keeping cash at the core of Europe's financial system, despite the advancement of the digital euro. ECB Executive Board member Piero Cipollone stated that a digital euro will not replace physical money, but rather complement it to preserve payment autonomy. Cipollone emphasized that cash's availability in both physical and electronic form will strengthen Europe's payment autonomy, especially in times of crisis when digital infrastructure might not be accessible.
The ECB's push for a digital euro aims to serve as a regulated alternative to privately issued stablecoins, which are gaining traction globally. However, a recent ECB study revealed that Europeans showed little interest in the digital euro, with respondents allocating a small portion to the digital euro in a simulated allocation of 10,000 euros. Despite this, the ECB is moving forward with its digital euro plan, and is also calling for global coordination in regulating stablecoins to combat US dollar dominance.
Spar Rolls Out Nationwide Crypto and Stablecoin Payments in Switzerland
Spar, a global grocery giant, is enabling stablecoin and cryptocurrency payments in its stores across Switzerland, marking the country's first nationwide rollout of digital asset payments in the retail sector. The service is already live in 100 Spar stores and will expand to the remaining locations in coming months. Customers will be able to pay with over 100 cryptocurrencies and stablecoins through the Binance Pay and DFX.swiss platforms, with the option to settle payments in Swiss francs or other currencies.
The rollout is expected to save merchants up to two-thirds of card commission fees compared to traditional card payments. Similar "smart wallet payment solutions" are seen as the future for the retail sector due to increasing customer demand. This move follows other big brands adopting cryptocurrency payments in Switzerland, a country known for its crypto-friendly environment, with over 1,000 shops already accepting Bitcoin payments.
European Companies Join the Growing Corporate Bitcoin Adoption Wave
Amdax, a Dutch cryptocurrency service provider, is launching a Bitcoin treasury company, AMBTS B.V., with the goal of accumulating 1% of all Bitcoin in circulation. The company plans to raise capital in stages through the markets to expand its Bitcoin holdings and increase Bitcoin-per-share metrics for investors. This move comes as more European companies follow US counterparts in adopting Bitcoin strategies, with at least 15 European companies having publicly announced adopting Bitcoin as part of their corporate balance sheet.
Bitcoin has outpaced all major asset classes over the past decade, increasing more than 26,900%. Corporate Bitcoin adoption is also growing in Asia, spearheaded by Japanese investment firm Metaplanet, which has surpassed 18,888 BTC or $2.1 billion in total holdings. The growing trend of corporate Bitcoin adoption has sparked optimism, but also raised concerns about nationalization and the potential risks associated with holding large amounts of Bitcoin.
EU Considers Public Blockchains for Digital Euro, Shifting from Private Models
The European Union is exploring the use of public blockchains like Ethereum and Solana for its digital euro, signaling a potential shift from private blockchain models such as China’s CBDC. According to the Financial Times, the European Central Bank (ECB) is considering running the digital euro on a public blockchain, which is open to everyone, rather than a private one. This move could represent a major milestone in the digital euro’s development, as the ECB has not yet finalized the technology framework for the project.
The decision to explore public blockchains comes amid growing concerns in Europe about the dominance of US stablecoins, particularly those pegged to the US dollar. ECB officials have expressed interest in reducing reliance on these stablecoins by introducing a digital euro. However, adopting a public blockchain model could bring both benefits, such as better interoperability with existing blockchain infrastructure, and challenges, including increased state influence over blockchain governance. The ECB is expected to make a decision on the digital euro by the end of 2025.
Winklevoss Twins-Backed Bitcoin Firm to List in Amsterdam
A bitcoin treasury firm backed by the Winklevoss twins is set to list in Amsterdam, marking a significant development in the cryptocurrency sector. The company, which focuses on bitcoin investments, aims to expand its presence in the European market through this listing.
Reuters reports that the firm’s move highlights growing interest in cryptocurrency-related ventures and could influence future regulatory and financial strategies in the region. The listing is expected to draw attention from investors and industry observers, underscoring the evolving role of digital assets in global finance.