EMEA Daily: Digital Euro could arrive by 2026
In today’s major news from Europe, the Middle East and Africa (EMEA), an official from the European Central Bank claims that the digital euro could be in circulation in four years.
Additionally, new EU consumer credit rules could arrive this summer, and Germany’s financial watchdog is asking Deutsch Bank about its WhatsApp messaging practices.
ECB Panetta: Digital euro could be launched within four years
A digital euro could become a reality within the next four years, Fabio Panetta of the European Central Bank (ECB) board said on Monday (May 16), calling it a necessary step towards economic growth and strength.
“As we face the most serious geopolitical crisis since the Cold War, old certainties are increasingly being challenged,” Panetta said, referring to Russia’s invasion of Ukraine.
“In the financial realm, old certainties are also beginning to crumble,” he continued. “Digital technologies, changing payment habits and the race for payments supremacy are testing the complementarity of public and private money, which has long been the cornerstone of our monetary system.”
BaFin asks Deutsche Bank for clarification on corporate communications via WhatsApp
German financial watchdog BaFin wants more information from Deutsche Bank on how bank employees use private messages on WhatsApp for work purposes.
Senior Deutsche Bank executives, including board members, used WhatsApp, other messaging tools and private email accounts to manage their affairs, sources familiar with the matter told Bloomberg.
BaFin wants to make sure Deutsche Bank officials follow banking rules, the sources said. The request comes as Deutsche Bank CEO Christian Sewing has spent billions to improve the bank’s controls and its relationship with supervisors.
New EU consumer credit rules could be approved by summer
A committee of the European Parliament is expected to vote next month on the proposed consumer credit directive (CCD) with the aim of finally approving it in plenary session before the summer break. Lawmakers were due to meet on Tuesday May 17 to discuss proposed amendments to the text.
In the wake of the increase in the number of digital lenders and the increase in the online distribution of consumer credit, the European Commission proposed to amend the CCD in June, because the existing law, which was drafted in 2008, does not include many popular new lending initiatives such as buy now, pay later (BNPL), payday loans or short-term overdraft facilities.
EU Regulators Crack Down on Stablecoins While Boosting CBDCs
After a volatile week for stablecoins and cryptocurrencies, this week has started with regulators across the European Union calling once again to look into this space and promote alternatives to private digital currency, in the occurrence a digital euro.
Two senior central bank officials have blasted crypto assets and the disruption they could bring to the global financial system if left unregulated.
First, Banque de France Governor Francois Villeroy de Galhau told a conference in Paris that more regulation is needed and that crypto assets should be consistently and appropriately interoperable across jurisdictions.
Meanwhile, during a speech in Dublin, Fabio Panetta, member of the executive board of the European Central Bank and responsible for the development of a central bank digital currency for Europe, warned that stablecoins are vulnerable to races.
Digital Grocery Delivery Startup Buymie Secures $7.3M in New Funding
Irish online grocery delivery startup Buymie has secured €7 million ($7.3 million) to further develop its digital ordering and delivery technology.
The company said it would use the capital to expand into Ireland and the UK, with around 200 other cities potentially available.
Based in Dublin and co-founded in 2016 by CEO Devan Hughes, Buymie specializes in fast online grocery delivery. Last year, the company said it saved customers about 100,000 car trips for everyday groceries.