Joachim Nagel, president of Germany’s central bank, the Deutsche Bundesbank, supported the introduction of a euro-pegged central bank digital currency (CBDC) and euro-denominated stablecoins for payments.
In remarks prepared for a speech at the New Year’s Reception of the American Chamber of Commerce in Frankfurt on Monday, Nagel <a href="https://www.bundesbank.de/en/press/speeches/priorities-and-challenges-for-europe-in-a-changing-world-989870" rel="noopener noreferrer nofollow">said</a> EU officials were “working hard” toward the introduction of a retail CBDC. Euro-denominated stablecoins, according to the central bank president, could also contribute to “making Europe more independent in terms of payment systems and solutions.”
“Notably, a wholesale CBDC would allow financial institutions to make programmable payments in central bank money,” said Nagel. “I also see merit in euro-denominated stablecoins, as they can be used for cross-border payments by individuals and firms at low cost.”<iframe src="https://www.youtube.com/embed/VcahOiyOW5k?start=" sandbox="allow-scripts allow-same-origin allow-popups allow-forms"></iframe>
Nagel’s remarks come months after US President Donald Trump signed a bill into law <a href="https://cointelegraph.com/news/banking-lobby-change-genius-act" rel="noopener noreferrer nofollow">establishing a framework for payment stablecoins</a> in the country, potentially setting US dollar-pegged stablecoins on a path to challenge any possible rollout of a euro-pegged peer. The law is expected to be fully implemented 18 months after it was signed or 120 days after related regulations are finalized.
Related: <a href="https://cointelegraph.com/news/ing-germany-crypto-etp-etn-bitwise-vaneck" rel="noopener noreferrer nofollow">ING Germany expands crypto ETP and ETN offerings with Bitwise, VanEck</a>
The German central bank president’s comment on stablecoins did not include risks he <a href="https://www.bundesbank.de/en/press/speeches/european-monetary-policy-challenges-in-the-new-geopolitical-environment-989612#tar-1" rel="noopener noreferrer nofollow">mentioned </a>last week at the Euro50 Group meeting. Nagel warned domestic monetary policy “could be severely impaired, not to mention that European sovereignty could be weakened” if US dollar-denominated stablecoins were to have a significantly larger market share than a euro-pegged coin.
<h2 id="stablecoin-yield-at-issue-in-us-bill-under-consideration">Stablecoin yield at issue in US bill under consideration</h2>
Washington lawmakers and White House officials have been <a href="https://cointelegraph.com/news/white-house-banks-shouldnt-fear-stablecoin-yield" rel="noopener noreferrer nofollow">meeting with representatives</a> from the banking and crypto industries ahead of a potential vote on the CLARITY Act in the US Senate. The bill, expected to provide a comprehensive regulatory framework for digital assets, has been dividing many crypto industry and banking leaders due to its approach to stablecoin rewards, which has yet to be finalized in the legislation.
Magazine: <a href="https://cointelegraph.com/magazine/bitcoin-price-prediction-peter-brandt-arthur-hayes-ethereum-trade-secrets/" rel="noopener noreferrer nofollow">Brandt says Bitcoin yet to bottom, Polymarket sees hope: Trade Secrets</a>

Germany‘s central bank president touts stablecoin and CBDC benefits for EU

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