The European Parliament released a report on the regulator’s operations with a clear message: Europe needs its own digital currency. MPs fear that the dominance of private cryptocurrencies and stablecoins threatens the financial independence of the bloc.
In parallel, demands are being made for the ECB to stop artificially pumping markets with liquidity.
While the regulator dragged its feet on raising rates, the cost of a food basket in Europe rose by a third compared to pre-COVID prices. Now, expectations are high for Christine Lagarde’s team to make decisions based strictly on economic data.
Digital Euro VS Private Corporate Money
The document describes the digital euro as a survival tool for the single market. The regulator must accelerate its implementation to avoid surrendering the payments sector to private corporations or players outside EU jurisdiction. Market monitoring of crypto assets requires strengthening, yet it is too early to bury cash — it must remain an accessible means of payment.
Stopping the Printing Press
Parliament members insist on completely winding down government bond purchase programs. Rapporteur Johan Van Overtveldt emphasized that political interference in Central Bank operations guarantees inflation and chaos, as shown by examples of pressure on the Fed in the US. The era of a bloated balance sheet must end to stop distorting market signals.
Read also:
- How CFOs Save $100K+ Monthly on Stablecoins (The European Trick)
- The New Laws of US Crypto: GENIUS, CLARITY & Anti-CBDC Acts
- ECB Labels Stablecoins a Global Threat to Banks
- IMF Sees Stablecoins as Threat to Global Central Banks
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