Latest news with #CBDC
Crypto Insight
2 days ago
- Business
- Crypto Insight
Digital euro, not MiCA, key to managing crypto risks: Bank of Italy chief
Former European Central Bank (ECB) official and Governor of the Bank of Italy, Fabio Panetta, touted the digital euro as a key tool for controlling the risks of increasing cryptocurrency adoption. The Bank of Italy, on May 30, released an annual report with the governor's concluding remarks on the state of the economy. Panetta said the European Union must move forward with the central bank digital currency (CBDC) project to maintain financial stability and meet demand for secure digital payments. 'We would be remiss to think that the evolution of crypto-assets can be controlled only through rules and restrictions,' Panetta said, warning that crypto regulation alone cannot address the systemic risks posed by crypto, and that the digital euro would be key to addressing them. MiCA's limited impact on EU stablecoins Panetta also addressed the impact of the EU's crypto regulatory framework, the Markets in Crypto-Assets Regulation (MiCA), which entered into full force in late 2024. 'Since MiCAR came into force, only some EMT [electronic money token] stablecoins have been issued in the EU and their circulation is limited so far,' the governor stated. He also said MiCA has not fueled any significant stablecoin developments in Italy: 'In Italy, there has so far been little interest in the issuance of crypto-assets by supervised intermediaries and other operators, while a growing focus on custodial and trading services has been observed.' MiCA has encouraged businesses to report if they plan to launch crypto asset services or intend to apply for authorization to do so, he added. Risks stemming from foreign platforms While offering some protection to European investors, MiCA has not fully safeguarded savers from the risks associated with 'heterogeneity in regulatory approaches' globally, Panetta argued. 'EU citizens might be exposed to failures of platforms or issuers based in other jurisdictions that lack adequate controls or the necessary transparency and operational safeguards,' he said. He called for stronger international cooperation and urged the EU to lead on establishing global regulatory standards. Digital euro is ultimately the right tool Panetta said that only a digital euro, backed by the central bank, could offer the necessary trust and functionality in a changing payment landscape: 'What is needed is a response that matches the ongoing technological transformation, one capable of meeting the demand for secure, efficient, and accessible digital payment instruments, all while preserving the role of central bank money,' he said. 'The digital euro project stems precisely from this need.' Panetta's remarks echo the agenda promoted by ECB Executive Board member Piero Cipollone, who has advocated for the launch of a digital euro, citing the growing popularity of US dollar stablecoins, which now make up 97% of the entire stablecoin market. Previously a member of the ECB's Executive Board, Panetta resigned in October 2023, with his position subsequently filled by Cipollone. Panetta's report came weeks after Tether, the issuer of the world's largest US dollar-pegged stablecoin, USDt, defended its decision to skip MiCA registration for USDT in early May. 'MiCA license is very dangerous when it comes to stablecoins, and I believe that is even more dangerous for the small, medium banking system in Europe,' Tether CEO Paolo Ardoino said at the time. Source:
Hindustan Times
3 days ago
- Business
- Hindustan Times
Why is the crypto market down today? Explained
The cryptocurrency market on Friday experienced a significant decline, with a 61 billion dollar dip in total market capitalisation, partially due to new restrictions imposed by China on private cryptocurrency holdings. China has imposed a fresh ban on cryptocurrency holdings according to a report by Binance. The Chinese government has not only banned trading or mining of cryptocurrencies, but even individual ownership of digital assets like Bitcoin. Although the current situation is challenging, analysts expect that downward pressure will ease soon, says InvestX, a cryptocurrency and finance related website. Also Read: Crypto investor tortures Italian man for Bitcoin password in $30,000-a-month NYC apartment The move by China has led to a general decrease in investor optimism and has caused panic selling that caused a drop in the markets. China has had a hardline approach to cryptocurrency in order to promote the use of the state-backed digital yuan. With the ban on private crypto holdings, Beijing is tightening its grip on financial flows, potentially accelerating the adoption of its central bank digital currency (CBDC). Also Read: Who is John Woeltz? $100M crypto king kidnaps, tortures Italian man for Bitcoin password in NYC before dramatic escape Meanwhile, the Trump administration's decision to favour tax cuts and lower tariffs have the potential to kick off another speculative frenzy in markets, reported Reuters, citing Bank of America. This US economic strategy could incentivize traders to ditch bonds and start buying back into artificial intelligence and crypto trades, which would risk inflating a market 'bubble." US vice president JD Vance has advocated for the use of Bitcoin and other cryptocurrencies in order to build on its strategic advantages against China. During a Bitcoin Conference in Las Vegas, Vance applauded President Donald Trump's executive order in March that created a strategic bitcoin reserve with tokens already owned by the government.
Coin Geek
3 days ago
- Business
- Coin Geek
Landless farmers in India reap benefits of CBDC: report
Getting your Trinity Audio player ready... What once seemed like a far-off concept—using a central bank digital currency (CBDC) as an alternative to traditional money—is now becoming a reality in India. Initially met with skepticism, the digital rupee has moved beyond the experimental stage and is actively being used, with the State Bank of India (NASDAQ: SBKFF), the country's largest public sector bank, leading its real-world application. In partnership with the National Bank for Agriculture and Rural Development (NABARD), SBI is delivering agricultural credit through CBDC to tenant farmers—those who cultivate land without owning it—in parts of Andhra Pradesh and Odisha provinces. This initiative goes beyond theory, demonstrating how digital currency can streamline credit delivery, prevent misuse, and ensure that benefits reach genuine cultivators, not middlemen or landlords. According to a Financial Express report, NABARD and SBI are running pilot projects to help landless farmers get access to agricultural loans in select districts of Andhra Pradesh and Odisha provinces. These pilots use the Reserve Bank of India's (RBI) CBDC to offer Kisan Credit Card (KCC) benefits to tenant farmers. SBI is conducting the pilots in Andhra Pradesh's Krishna, East and West Godavari districts, and in Odisha's Cuttack and Puri districts. The initiative aims to prevent misuse of credit by ensuring that loans are used only for farming purposes, such as buying seeds and fertilizers from approved vendors. So far, in FY2025, the report stated that over ₹4.5 crore has been sanctioned under this pilot. In Odisha, 501 tenant farmers have benefited with loan approvals, while in Andhra Pradesh 218 farmers have benefited from the loan sanctions. The report stated that 30–40% of India's cultivated land is currently farmed by tenants who don't own the land. However, KCC loans are usually given only to landowners. Although the government has tried forming joint liability groups to offer loans to landless farmers, banks still face issues verifying who the actual cultivators are. The report stated that under the Modified Interest Subvention Scheme (MISS), KCC holders can borrow up to ₹3 lakh (about $3,508) at a 7% annual interest rate. If the loan is repaid on time, farmers get a 3% interest discount, reducing the effective rate to 4%. From FY2026, the loan limit will increase to ₹5 lakh (about $5,847) per year. KCC loans help farmers meet working capital needs for purchasing agricultural inputs like seeds, fertilizers, and pesticides, as well as for allied sectors like dairy and fisheries. The pilot programs in Andhra Pradesh and Odisha mark a turning point. Using the digital rupee, tenant farmers receive direct benefit transfers (DBT) and agricultural loans. These funds are being used to buy essential inputs like seeds and fertilizers from authorized vendors, ensuring that credit is used for its intended purpose. By integrating digital currency into agricultural credit systems, the initiative offers a transparent, traceable, and efficient way to support the backbone of Indian agriculture: its farmers, especially those without land titles. The initiative also addresses long-standing gaps in rural credit delivery, particularly for tenant farmers, who have historically struggled to access formal loans due to a lack of documentation and land records. With CBDC and digital wallets, these barriers are starting to break down—signaling a shift toward more inclusive, accountable, and tech-enabled rural finance. The RBI started its first digital rupee pilot in the wholesale segment on November 1, 2022, to settle secondary market transactions in government securities. It started the pilot with nine banks—State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank (NASDAQ: HDB), ICICI Bank (NASDAQ: IBN), Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC (NASDAQ: HSBC). The retail digital rupee pilot started on December 1, 2022, and users were able to transact through a digital wallet offered by the participating banks and stored on mobile phones or devices. In 2024, India's blockchain-based digital rupee made significant progress as the RBI achieved notable advancements with its CBDC use cases. In December 2024, former central bank Governor Shaktikanta Das said India's CBDC has a lot of potential and is likely to become the future of money. Watch: Finding ways to use CBDC outside of digital currencies title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Hans India
3 days ago
- Business
- Hans India
E-rupee in circulation breaches Rs 1k cr mark in Mar
Mumbai: The value of central bank digital currency (CBDC) or e-rupee in circulation jumped to Rs 1,016 crore at the end of March 2025 from Rs 234 crore in the year-ago period, the Reserve Bank said on Thursday. The RBI is exploring the commencement of CBDC pilots on cross-border payments, it said in the annual report without giving a timeline. A bulk of Rs 857 crore of the e-rupee in circulation is in Rs 500 denomination, the annual report said, adding Rs 200 (Rs 91 crore in circulation) and Rs 100 (Rs 38 crore in circulation) denominations also have sizeable presence. As at end-March 2025, the e-rupee retail pilot was expanded to 17 banks and 60 lakh users. To further enhance adoption and improve distribution, certain non-banks have been allowed to offer CBDC wallets.
Yahoo
3 days ago
- Business
- Yahoo
Nigel Farage Vows to Establish BTC Reserve and Pass Pro-Crypto Legislation Once in Government
Reform UK leader Nigel Farage promised today to pass crypto-friendly legislation and establish a bitcoin BTC reserve at the Bank of England if he comes into government. 'We have put together… the Crypto Assets and Digital Finance Bill. We will campaign for this, and we will put it in place when we win in the general election,' Farage said on stage at the Bitcoin conference in Las Vegas. 'We are going to launch, in Britain, a crypto revolution. We're going to make London one of the major trading centers of the world. We're deadly serious,' Farage added. The legislation will prohibit banks from debanking customers for interacting with crypto, Farage stated. He also talked about implementing a capital gains tax of 10% of crypto assets, arguing that 'If taxes are reasonable, people will pay them.' He argued against the implementation of a British central bank digital currency (CBDC) as well. Reform UK has been ascendant in British polls recently; the party also performed well in local elections earlier in May. The next general election, however, is currently slated for August 2029. The party announced on Thursday that it would become the first European political party to accept crypto donations. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
