Vision

Bitcoin

Read

The <a href="https://coingape.com/european-central-bank-ecb-advances-digital-euro-development-with-rulebook-review/" rel="noopener noreferrer nofollow">European Central Bank</a>‘s (ECB) announcement of the digital euro project has led to the cryptocurrency sector brewing a pot of skepticism. While the ECB seeks to simplify and standardize digital payments within Europe, supporters of decentralization and digital currencies such as Bitcoin do not favor the reform.
<h2 id="the-vision-of-ecb-meets-crypto-ideals">The Vision of ECB Meets Crypto Ideals</h2>
In this regard, the ECB has presented a plan to transform<a href="https://coingape.com/circle-policy-head-shares-key-predictions-on-potential-digital-euro/" rel="noopener noreferrer nofollow"> digital payments</a> within the Eurozone. Once introduced, the central bank expects that a digital euro will contribute to a more united and effective payment system that will help both consumers and businesses. This scenario involves allowing the payment service providers to distribute the digital euro, a direct link to consumers.&nbsp;
Besides, a fair compensation model and safeguards to provide financial stability are under consideration. Furthermore, the program is committed to unifying payment protocols in all of the Eurozone, thus enabling the service providers to reach a wider area within the region.
<h2 id="skepticism-from-the-bitcoin-community">Skepticism from the Bitcoin Community</h2>
Nevertheless, the crypto community is full of fears regarding this digital step. Critics also argue that the <a href="https://coingape.com/crypto-news-ecb-confirms-digital-euro-cbdc/" rel="noopener noreferrer nofollow">digital Euro</a> represents an unwarranted step toward centralization in a digital payment that is already highly efficient and innovative using current services. The sentiment in this community is very much in favor of decentralization and self-determination, aspects that they think a centralized digital euro could destroy.
The essence of criticism is fear that the digital euro can kill innovation. The growing control of central banks on digital currencies is regarded as a step back from the freedoms that decentralized platforms present. This viewpoint considers the project not to be a strengthening of the digital payment system but an obstacle to the innovation and open development that digital money, for example, Bitcoin, has promoted.
<h2 id="ecb-s-critique-and-legislative-developments">ECB’s Critique and Legislative Developments</h2>
Despite such criticisms, the ECB and senior executives have tried to allay fears, especially those associated with the effect upon traditional <a href="https://coingape.com/spain-advances-in-cbdc-exploration-selects-3-partners/" rel="noopener noreferrer nofollow">banking systems</a>. The digital euro design incorporates features such as a holding limit and a reverse waterfall to avoid bank deposits flying into the central bank.&nbsp;
As stated by the ECB, this rationale eliminates the probability that the banking sector could be compromised while financial stability issues are catered for. Also, a few of the latest legislative drafts have included changes beneficial for banks, like the ability to establish their holding thresholds, which means they would hold a stake in the digital euro’s ecosystem.
Read Also: <a href="https://coingape.com/warren-buffett-backed-capital-one-mulls-buying-discover-financial-services/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">Warren Buffett Backed Capital One Mulls Buying Discover Financial Services</a>
The post <a href="https://coingape.com/bitcoin-community-gives-a-cold-shoulder-digital-euro-initiative/" rel="noopener noreferrer nofollow">Bitcoin Community Gives a Cold Shoulder Digital Euro Initiative</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Bitcoin Community Gives a Cold Shoulder Digital Euro Initiative

Table of Contents

Coingape News Media

Other articles published on Feb 19, 2024

Bull Kripto 2024, 3 Kripto Ini Diraba Dulu

SEC Chairman Gary Gensler Confronts Criticism from Traders and Crypto Leaders

Whale Dumps 25 Mln XRP Ahead Of Key Ripple Vs SEC Date, Price Below $0.55?

Ethereum’s Potential in Attracting Institutional Investors Highlighted

South Korea looking to delay crypto tax amid concerns over asset discrimination

Bitcoin dad’s beef with daughter goes viral after Musk response

Join our free newsletter for daily crypto updates!