Proposal to Halt Digital Euro Initiative
In a significant move that could reshape the digital currency landscape in Europe, Éric Ciotti from the Union of the Right for the Republic is spearheading a proposal in the French National Assembly to halt the European Central Bank’s (ECB) initiative to introduce a digital euro. This proposal encourages the adoption of euro-backed stablecoins and hinges on increasing investments in the broader crypto-asset sector.
Inspiration from U.S. Legislation
The resolution draws inspiration from recent legislative actions in the United States, particularly the GENIUS Act passed last July, which seeks to curb the development of central bank digital currencies (CBDCs) while bolstering the market for stablecoins. The proposal urges the French government to advocate for a robust framework at the European level that would provide guidelines concerning cryptoasset holdings and possibly allow deviations from the Basel banking regulations established in 2022. Such adjustments are envisioned to facilitate the utilization of cryptoassets as collateral, while also promoting a long-term review of the Basel Committee’s standards.
Concerns Over CBDCs
Moreover, the resolution posits that the nature of CBDCs limits financial freedom by offering state-backed currencies that are entirely governed by the central authority, which can oversee transactions and even restrict access to funds at any moment—raising red flags regarding privacy and asset ownership.
Global Trends in Digital Currency
Countries around the world, such as Kyrgyzstan, are reportedly advancing their own CBDC projects. Within this context, Binance’s founder, Changpeng “CZ” Zhao, announced plans for the KGST stablecoin, which will be developed on the BNB Chain, reinforcing the trend towards decentralized finance.
Shift Towards Decentralized Assets
As France stands against the ECB’s centralized digital euro, it signals a preference shift towards decentralized assets like Bitcoin and stablecoins within European markets. This pivot may enhance the market dynamics for cryptocurrencies like SHIB, suggesting improved liquidity, increased confidence, and broader acceptance across crypto exchanges and payment systems in Europe. As governmental attitudes evolve towards decentralized digital assets, the promise for SHIB and similar cryptocurrencies appears to broaden, potentially leading to greater utility and market presence in the continent’s financial ecosystem.
