Consensys-backed e-money issuer Monerium thinks the route to a digital euro is simpler than the European Central Bank suggests. The fintech, which focuses on bridging fiat money with blockchains by issuing programmable digital cash, published a response to the ECB’s recent public consultation on the digital euro on Oct. 13. In summer 2019, Monerium had become the first company worldwide to receive a license from Icelandic regulators as part of a new European regulatory framework for e-money services across the European Economic Area. It provided fiat payment services using the Ethereum blockchain, and later partnered with blockchain protocol Algorand. In …

The European Central Bank launched a public consultation on a potential digital euro on Oct. 12. Developments on the central bank digital currency front in the Eurozone have picked up pace amid the COVID-19 pandemic, and the central bank has framed its introduction to the public consultation with the claim that the issuance of a CBDC could help "cushion the impact of extreme events — such as natural disasters or pandemics — when traditional payment services may no longer function." Earlier this month, a Bloomberg report claimed that the ECB applied to trademark the term "digital euro" on Sept. 22, …

A crypto payments network has been unveiled as the 10th member of Blockchain for Europe. Blockchain for Europe voted in favor of Electroneum’s membership, as their goal for financial inclusion has attracted the attention of crypto and blockchain experts worldwide. The crypto project will now rub shoulders with fellow members that include Binance and Ripple as the group “focuses on blockchain promotion and education to help the EU remain at the global forefront of innovation.” Blockchain for Europe is designed to help prominent businesses in this sector influence policymaking in the trading bloc. Welcoming Electroneum, the organization’s chair, Maria Minaricova, …

The European Commission’s newly proposed cryptocurrency regulations pose a specific risk for the decentralized finance industry, according to industry regulatory adviser XReg Consulting. Adopted by the European Commission on Sept. 24, the proposed Markets in Crypto-Assets, or MiCA, regulations aim to strengthen consumer and investor protection in the crypto industry by laying out a series of obligations on crypto-asset issuers. The regulations stipulate that crypto-asset issuers must be incorporated as a legal entity in order to operate crypto services in the European Union. This particular requirement, however, could represent a significant challenge for DeFi projects because DeFi tokens’ issuers are …

The Estonian central bank, Eesti Pank, announced the launch of a research program to study how to build a digital currency infrastructure. According to a statement, Eesti Pank partnered with technology companies SW7 Group and Guardtime for the research project. It aims to see if a keyless signature infrastructure (KSI) blockchain solution can run its virtual currency program. Estonia already uses KSI blockchain technology for its e-government services. The bank’s project will also look into new payment solutions “that can be made possible by using electronic IDs and other Estonian e-government solutions.” The project, however, will not specify which technologies …

More than half of all exchanges worldwide have weak KYC identification protocols — with exchanges in Europe, the U.S. and U.K. among the worst offenders, according to a new study by blockchain analysis firm CipherTrace CipherTrace analyzed more than 800 decentralized, centralized, and automated market maker exchanges and found 56% of them did not follow KYC guidelines at all despite anti-money laundering (AML) regulations. The highest number of such exchanges are in Europe — a region renowned for stricter regulations. However, 60% of European Virtual Asset Service Providers have deficient KYC practices. The U.S. U.K and Russia are the three …

Major players in the global cryptocurrency community have addressed the European Commission’s new legislative proposals on digital assets. The International Association for Trusted Blockchain Applications, or INATBA, has released an initial response to the Markets in Crypto-Assets (MiCA) regulations proposed by the EC. The association features major crypto companies like Ripple, ConsenSys, and Iota. In its official response to the EC, the INATBA members expressed the industry’s concerns over the proposed MiCA regulations, calling the authority to bring their forces together in further development of the regulatory framework. While the INATBA generally sees the MiCA as a positive step that …

The European Commission is moving to provide more legal clarity and certainty for the cryptocurrency industry in its member states. On Sept. 24, the EC officially adopted a new digital finance package including digital finance and retail payments strategies, as well as legislative proposals on crypto assets. The EC said that the new package represents the first time that the authority proposed new legislation on crypto assets. As part of the new legislative proposals, the EC pays special attention to stablecoins — a type of cryptocurrency that pegs value to an external reference like the United States dollar or an …

The European Commission in collaboration with the 30-country alliance called the European Blockchain Partnership (EBP) plans to launch a pan-European blockchain regulatory sandbox by 2022. Per an update to the official webpage for the commission’s Digital Innovation and Blockchain team on Sep. 23, the European Commission will work with EBP on the sandbox to test use cases of blockchain and digital assets in the European Blockchain Services Infrastructure, or EBSI. The EBSI is a joint initiative of the European commission and the EBP that aims to deliver cross-border digital public services across the EU using blockchain technology. Outside of the …

The European Central Bank has warned the global community about the risks of so-called “stablecoin runs.” Analogous to the term “bank runs” in the traditional financial system, stablecoin runs could occur if end users lose confidence in the issuer or its network, the ECB writes in a report released Tuesday. In traditional finance, a bank run occurs when a large number of customers withdraw their deposits simultaneously over concerns of the bank’s solvency. As more people withdraw their funds, the probability of default increases, triggering more withdrawals. The ECB goes on to say that, during such a run, some parts …

Retail central bank digital currencies, or CBDCs, do not require the use of blockchain technology, according to executives at major European central banks. Thomas Moser, an alternate member of the governing board at Swiss National Bank, and Deutsche Bundesbank’s Martin Diehl discussed the state of CBDCs at the European Blockchain Convention Virtual 2020 conference on Monday. During the online panel discussion, both Diehl and Moser seemed to agree that global retail CBDC projects do not need blockchain, citing a number of reasons. Moser said that the primary use cases for blockchain intend to provide trust when a project has no …

Wirex — the first cryptocurrency platform to be granted a Mastercard principal membership — will release a new multi-currency card on the heels of the membership. Wirex is a London-based crypto payment processor and is regulated by the U.K.’s Financial Conduct Authority, with a license to issue crypto cards in Europe. The multi-currency Wirex Card will be supported by Mastercard and linked to 19 crypto and fiat currency accounts in the Wirex app. An official release date has not yet been announced. In a bid to encourage the use of cryptocurrency for everyday payments, the company is also upgrading its …