EU council endorses offline and online versions of digital euro
Analysis
Price Impact
MedThe endorsement of a digital euro by the eu council, including a privacy-focused offline version, is a significant step towards the implementation of a central bank digital currency (cbdc) in a major economic bloc. this could introduce state-backed competition to existing digital payment systems and potentially to stablecoins and other cryptocurrencies within the eurozone.
Trustworthiness
HighThe news is directly sourced from an official eu council document, reported by a reputable crypto news outlet, making it a factual and verifiable policy development.
Price Direction
NeutralWhile the introduction of a digital euro might legitimize the concept of digital currencies for a broader audience, it also represents a state-controlled asset that could compete with decentralized cryptocurrencies, particularly stablecoins, for everyday transactions. the market might view this with caution due to potential increased regulatory scrutiny and competition, but immediate drastic price movements for general cryptocurrencies are unlikely as this is an endorsement, not a launch.
Time Effect
LongThis is a foundational policy decision. the actual development, launch, and widespread adoption of the digital euro will take several years, meaning its primary impact on the broader financial landscape and crypto ecosystem will unfold over the long term.
Original Article:
Article Content:
Adrian Zmudzinski 1 minute ago EU council endorses offline and online versions of digital euro The Council of the European Union endorsed the launch of the European Central Bank’s digital euro in both an online and a privacy-focused offline version. Listen 0:00 News COINTELEGRAPH IN YOUR SOCIAL FEED The Council of the European Union (EU) the European Central Bank’s (ECB) digital euro design, A Friday document outlined the council’s position on the digital euro, including alignment with the ECB on launching online and offline variants simultaneously ECB President Christine Lagarde that t rest with EU lawmakers “It's now for the European Council and certainly later on for the European Parliament to identify whether the Commission proposal is satisfactory, how it can be transformed into a piece of legislation or amended.” The offline digital euro’s limitations Documents reveal that a cash-like currency observers from linking multiple activities to the same user. The blueprint for the offline digital euro takes it up a notch by having transaction data never leave the direct participants. The system is meant to allow authorized devices to transfer digital euro central-bank-signed tokens during in-person transactions. tproximity requirement b. A relay attack an attacker places proxy devices near the receiving and sending devices to bridge the NFC signal over the internetwould be hard to avoi making some online non-proximity use by advanced users difficult to curtail. An expert opinion piece by the European Data Protection Board admits that “the available countermeasures are very limited.” The document concludes that “we will not consider physical proximity as a property of cash that can be reliably enforced in a digital currency.” Related: Crypto urges SEC to see the good in blockchain privacy tools Private, but not like cash The offline digital euroand the private keys used to manage would be stored in the secure elements of certified devicesmobile devices and smart cards Related: SEC commissioner says crypto is ‘helping to nudge reassessment’ on privacy # Europe # ECB # Euro # European Union # CBDC # Regulation Add reaction