Connect with us

Crypto World

EU Parliament Backs Digital Euro, Signaling a New Era for Money

Published

on

Crypto Breaking News

The European Parliament backed the European Central Bank’s (ECB) digital euro initiative, casting it as a strategic tool in an era of rising geopolitical and financial tensions. In a plenary vote, MEPs approved the annual ECB report by 443 votes in favor, 71 against and 117 abstentions, endorsing amendments that frame the digital euro as essential to strengthening EU monetary sovereignty, reducing fragmentation in retail payments, and bolstering the integrity of the single market. The resolution underscores a policy stance that public money in digital form can curb Europe’s reliance on non-EU payment providers and private instruments, a concern voiced by policymakers amid broader global pressures.

Lawmakers also pressed for central bank autonomy, arguing that ECB independence must be safeguarded from political interference to preserve price stability and market confidence. In the debate, Johan Van Overtveldt, a former Belgian finance minister and MEP, warned that independence is not merely a technical characteristic; history shows that political meddling with central banks can trigger inflation, financial instability, and domestic strain. The emphasis on autonomy reflects a long-standing belief among European lawmakers that monetary policy should be shielded from short-term political cycles, a sentiment echoed as Europe maps out a retail payments framework that could influence the region’s financial architecture for years to come.

The discussion also touched on the broader narrative of digital finance as a public good and a geopolitical hedge. The European Parliament’s stance aligns with a growing consensus among central bankers and economists that a digitally native euro could serve as a sovereign tool—built on European infrastructure and standards—that reduces exposure to external payment rails and foreign governance. In remarks that circulated last month, ECB executive board member Piero Cipollone described the digital euro as “public money in digital form” and tied it to concerns about the “weaponisation of every conceivable tool,” a reflection of the risk environment surrounding global finance. Cipollone argued for a payments system that Europeans fully control, emphasizing resilience and strategic autonomy as key design principles.

The resolution also reiterates that cash remains a cornerstone of the euro area’s monetary system. Even as the ECB advances a digital complement, both physical and digital euros are designated as legal tender, ensuring that the public retains access to a universally accepted form of money. This stance is consistent with a broader push to position the digital euro not as a replacement for cash but as a parallel instrument designed to streamline cross-border transactions, improve settlement efficiency, and reduce reliance on external providers in times of stress. The emphasis on maintaining cash aligns with concerns about inclusivity and financial access, particularly for segments of the population that rely on traditional cash channels or may be unevenly served by new digital rails.

Advertisement

Digital euro as public good and geopolitical hedge

Beyond its domestic implications, the vote signals how Europe contends with a shifting global payments landscape. The digital euro is framed as a public good meant to strengthen policy sovereignty, reassuring citizens that EU institutions will steward a secure, interoperable, and accessible payments infrastructure. The debate also reflects unease about the potential dominance of non-EU payment schemes and the geopolitical leverage that private digital-payment networks could wield in a crisis. By advancing a centralized, EU-controlled alternative, policymakers aim to preserve policy levers and maintain financial stability even when external networks face disruptions or strategic realignments.

The debate has continued to unfold in parallel with calls from economists and policy experts who argue for a robust public option. In January, a coalition of economists urged MEPs to prioritize the public interest in the digital euro project, warning that neglecting a strong EU option could leave the bloc more exposed to the influence of private and foreign players in its financial system. The push reflects a nuanced balance: leveraging digital innovation to improve efficiency and security while safeguarding public accountability and democratic oversight. The outcome of these discussions will shape not only how the euro area processes payments but also how Europe positions itself in global debates over digital sovereignty and financial regulation.

The broader policy environment around the digital euro is evolving as institutions contemplate both technical and governance dimensions. While the central bank’s autonomy remains a central pillar, the political process will continue to shape the instrument’s scope, privacy protections, and interoperability with existing payment rails. As Europe progresses, observers will watch for concrete milestones such as governance models, technical standards, and timelines for testing and deployment. The interplay between public and private sector interests, along with the union’s approach to data privacy and consumer protection, will be critical in determining the digital euro’s adoption trajectory and its reception among citizens and businesses alike.

Why it matters

The European Parliament’s endorsement of the digital euro underscores a shift in how Europe conceptualizes money in a digital era. For consumers, the availability of a euro-denominated digital instrument promises faster and cheaper retail payments across member states, with the added security of a centralized, Europe-wide framework. For businesses, a unified, EU-controlled platform could simplify cross-border settlements and reduce exposure to the fragility of foreign payment rails, particularly in times of geopolitical stress. For policymakers, the project represents an opportunity to align monetary policy with digital infrastructure, ensuring that policy tools remain effective in a rapidly evolving payments landscape.

Advertisement

For fintechs and developers, the digital euro offers a defined public utility that could serve as a foundation for innovative payment experiences while adhering to European standards for privacy, security, and market integrity. The emphasis on independence and robust governance signals a carefully calibrated path to deployment—one that seeks to incentivize responsible innovation while maintaining a strict line against political meddling that could destabilize markets. In this sense, the digital euro is less about a single currency-proof-of-concept and more about how a highly developed regional economy can harmonize monetary integrity with digital modernization in a way that strengthens resilience and confidence across the bloc.

For the broader crypto and digital assets discourse, the EP’s position reinforces a divide between public, centrally issued digital money and the private, often cross-border nature of crypto and stablecoins. While not a cryptocurrency itself, the digital euro’s design and governance could influence how lawmakers approach non-sovereign digital assets, including questions about payments settlement, privacy standards, and cross-border interoperability. The outcome will likely feed into ongoing debates about regulatory clarity, consumer protection, and the degree to which public and private digital money can coexist without compromising financial stability.

What to watch next

  • Progress updates from the ECB on digital euro development, including governance and technical architecture.
  • Further parliamentary discussions and amendments clarifying the balance between independence, oversight, and integration with existing payment systems.
  • Policy guidance on the role of cash in a digital euro era and how legal tender considerations will be maintained.
  • Potential pilots or phased rollouts that test interoperability with national infrastructures and private payment providers.

Sources & verification

  • European Parliament press release: MEPs stress the importance of independent central banks in times of tension (https://www.europarl.europa.eu/news/da/press-room/20260205IPR33621/meps-stress-importance-of-independent-central-banks-in-times-of-tension)
  • Transcript and remarks from Johan Van Overtveldt on ECB independence (https://www.europarl.europa.eu/plenary/en/vod.html?mode=chapter&vodLanguage=EN&internalEPId=2017060832131&providerMeetingId=20260209-0900-PLENARY#)
  • ECB executive board member Piero Cipollone’s comments on digital euro as public money (https://cointelegraph.com/news/ecb-s-cipollone-says-digital-euro-key-to-payments-sovereignty-in-weaponised-world)
  • Analysis and commentary from economists urging a strong public option for the digital euro (https://cointelegraph.com/news/70-economists-eu-lawmakers-digital-euro)

Monetary sovereignty in the digital age: Europe’s digital euro push

In summary, the European Parliament’s latest vote signals a consensus that the digital euro should be developed with an eye toward sovereignty, resilience, and public value. It recognizes the need to preserve monetary policy autonomy in the face of evolving digital finance dynamics while acknowledging the practical benefits of faster, more inclusive payments across the union. By insisting that cash remains legal tender and by prioritizing independence, lawmakers aim to construct a framework that can withstand geopolitical disruptions and shifting power dynamics in the payments landscape. The path forward will require careful calibration of governance, technology, and regulatory oversight—an undertaking that will shape Europe’s financial infrastructure for the foreseeable future.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

Advertisement

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto World

Fragile Optimism in Crypto as ETF Flows Return

Published

on

Fragile Optimism in Crypto as ETF Flows Return


Spot Bitcoin ETFs added $145 million, Ethereum saw $57 million inflows, signaling fragile optimism after a sharp crypto sell-off.

Even though they were trading at around $68,000 and $1,980, respectively, at the time of writing, Bitcoin and Ethereum bounced yesterday after sharp sell-offs, with BTC reaching $71,000 and ETH climbing to $2,150 following the resumption of spot ETF inflows.

The rebound renewed speculation that BTC may have established a local floor, but traders are also bracing for today’s Non-Farm Payroll (NFP) report and Friday’s Consumer Price Index (CPI) release, two data points that could reset Federal Reserve rate expectations and determine whether the rally holds.

Advertisement

ETF Flows Turn Positive, But On-Chain Data Signals Volatility Ahead

In its latest market update, digital asset trading firm QCP noted that spot Bitcoin ETFs recorded $145 million in net inflows yesterday, building on Friday’s $371 million. Spot ETH ETFs also reversed course with $57 million in net inflows after three days of red.

The shift follows a period of intense selling pressure that recently drove BTC to around $60,000, its lowest level since before the November 2024 U.S. elections.

Despite the inflows, on-chain data suggests market participants are preparing for continued turbulence. For example, CryptoQuant contributor CryptoOnchain reported that on February 6, over 7,000 BTC moved from Binance to other spot exchanges, making it the second-highest daily volume in the past year.

At the same time, the seven-day moving average of flows from Binance to derivative exchanges spiked to 3,200 BTC, the highest level since January 2024. The analyst interpreted the migration of funds to derivative platforms as a sign that large holders are either hedging downside risk or positioning for sharp price swings.

Advertisement

Meanwhile, QCP market watchers revealed that the Coinbase BTC discount has narrowed from approximately 20 basis points to 9 basis points, signaling a moderation in U.S.-led selling. But the Crypto Fear & Greed Index remains at 9, deep in “extreme fear” territory, with the trading firm describing conditions as “thin ice that happens to be holding.”

You may also like:

Historical Context and On-Chain Trends

Bitcoin’s correction has drawn the broader market lower, with the OG cryptocurrency dipping below $67,000 and altcoins such as ETH, XRP, and BNB losing significant ground. The total crypto market capitalization has fallen to $2.36 trillion, shedding over $50 billion in daily value. Still, not all assets have mirrored this decline, as the likes of XMR gained 3%, while ZRO entered the top 100 following a 20% surge.

Unlike previous cycles, this downturn has avoided major systemic failures. Chainlink co-founder Sergey Nazarov pointed out on February 10 that real-world assets (RWAs) on the blockchain are expanding despite price volatility, with institutional interest sustained by technological advantages and 24/7 markets.

While the market looks for big economic changes, the increase in ETF investments provides some hope, but QCP warns that past price changes and how derivatives are set up mean traders should be careful and manage risks wisely.

Advertisement
SPECIAL OFFER (Exclusive)

SECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).

Source link

Continue Reading

Crypto World

Why XRP Could Still Dip Below $1, Analysts Explain

Published

on

Crypto Breaking News

XRP (CRYPTO: XRP) has retraced nearly 63% from its multi-year high of $3.66 to around $1.36 as of Wednesday, a move that market analysts say could carry bearish implications unless buyers reassert themselves. The slide comes amid a confluence of technical signals and growing on-chain activity that could either reinforce a near-term downshift or set the stage for a stubborn reversal. Traders are weighing a technical setup that points toward further pressure against a backdrop of sustained demand from spot XRP ETFs and persistent whale accumulation, painting a nuanced picture for the digital asset’s near-term trajectory. The Gaussian Channel, a charting method used to identify trends and potential support or resistance levels, places XRP at a crossroads where previous patterning has often dictated the tempo of subsequent moves.

Key takeaways

  • The price action has broken below a critical zone near $1.40, aligning with a bearish setup that could extend losses toward the $0.70–$1 range if support fails.
  • The Gaussian Channel shows the upper regression band near $1.16 and the middle band around $0.70, suggesting that a test of important structural levels could unfold over the coming weeks or months.
  • A drop below the local low of $1.12 would validate the bearish scenario described by market technicians, potentially accelerating the downside case.
  • Spot XRP ETF inflows have continued, with cumulative net inflows reaching about $1.01 billion and inflows of roughly $3.26 million on a single day, underscoring ongoing institutional interest.
  • On-chain activity has picked up, with whale transactions exceeding $100,000 and active addresses surging to a six-month high, signaling that buyers remain engaged despite the price decline.
  • Nevertheless, persistent ETF demand and on-chain signals could counterbalance the technical headwinds if liquidity conditions remain favorable and market sentiment improves.

Tickers mentioned: $XRP, $BTC, $ETH

Sentiment: Bearish

Price impact: Negative. A break below key supports could push XRP toward the mid-band around $0.70, extending the downside unless buyers step in.

Trading idea (Not Financial Advice): Hold. Near-term risk remains elevated if $1.12 fails, but renewals in ETF inflows and on-chain activity keep the scene cautiously balanced.

Advertisement

Market context: The XRP market remains closely tethered to liquidity flows from spot XRP ETFs and evolving on-chain activity. Spot XRP ETF inflows have continued, contributing to roughly $1.01 billion in cumulative net inflows and sustaining roughly $1.01 billion in assets under management, with daily inflows of millions that underscore ongoing institutional interest. At the same time, on-chain dynamics have shown resilience, with whale activity and active addresses rising even as price action remains under pressure. These factors collectively reflect a broader environment where ETF-driven demand can offset, at least temporarily, technical headwinds.

Why it matters

For investors watching XRP, the current setup matters because it juxtaposes a stubborn price decline with stubborn liquidity support. The Gaussian Channel’s readings imply that XRP could oscillate within a defined corridor before a decisive breakout or breakdown occurs. If the upper band near $1.16 acts as a temporary ceiling and the price fails to hold above the lower levels, the drawdown could extend toward the $0.70–$1 region, a zone that previously lacked robust testing for sustained support. Such a breach would be meaningful not just for XRP bulls and bears but for funds and institutions tracking the asset as part of broader crypto exposure. The dynamics of ETF flows, as observed in late-2025 through 2026, emphasize that institutional demand can create a buffer against rapid declines, but they are not a guarantee against further losses if macro conditions or sentiment deteriorate.

“The middle regression band currently ties up around $0.70, which is also a previous year-long resistance level seen back in 2023/2024, and hasn’t been backtested for support.”

On the liquidity side, the market has benefitted from a steady stream of ETF inflows. The Canary XRP ETF launch, which began late in 2025, has contributed to a trajectory of inflows that has pushed the cumulative total higher, with the latest daily inflows evidencing continued demand from institutional players. This flow is not a panacea for price declines, but it argues for a more nuanced outlook than a pure technical read would suggest. Meanwhile, on-chain metrics paint an equally important portrait. Analysts have highlighted a surge in XRP activity: whale transactions of over $100,000 and a spike in active addresses have suggested that sector participants remain engaged and are deploying capital despite adverse price movements. These signals can be precursors to a bottom or a renewed uptrend, depending on whether they align with broader market liquidity and risk appetite.

Analysts have also cited the importance of the price level around $1.12. A move below that local low could be a technical confirmation of the bearish scenario, triggering a cascade of downside protections and prompting a reevaluation of risk parity in XRP portfolios. Conversely, if ETF inflows persist and on-chain activity maintains its strength, XRP could find a foundation and attempt a staged recovery as liquidity conditions improve and risk sentiment stabilizes. The tension between price-driven momentum and liquidity-driven demand is a defining feature of XRP’s current phase, and market participants are closely watching both channels for signals of the next major move.

Advertisement

As the market weighs these factors, the broader crypto environment remains cautious. The behavior of BTC and ETH—often a barometer for risk sentiment—has a bearing on how XRP will respond to developing macro cues and regulatory dynamics. Although XRP has decoupled at times from the broader market, the path of least resistance in the near term could be influenced by the balance between selling pressure at technical resistance and fresh inflows that sustain institutions’ appetite for XRP exposure.

What to watch next

  • Monitoring XRP’s level relative to the $1.12 local low to gauge whether the bearish scenario gains traction.
  • Tracking the Gaussian Channel bands around $1.16 (upper) and $0.70 (middle) for potential testing or breakout signals.
  • Observing ongoing spot XRP ETF inflows and AUM, which could widen the collision between technical resistance and liquidity-driven strength.
  • Watching on-chain metrics, especially the trajectory of whale transactions and daily active addresses, for signs of renewed accumulation or distribution.

Sources & verification

  • Chart Nerd’s analysis on Gaussian Channel fractals and XRP price projections referenced in a social post.
  • Discussion on XRP price movement below the 1.60 level and potential downside scenarios.
  • Canary XRP ETF launch and the resulting inflow data, including cumulative inflows and daily inflows feeding assets under management.
  • Santiment’s reports on whale activity, large XRP transactions, and address activity as a measure of on-chain demand.

Market reaction and key details

The current XRP setup binds a bear-case price scenario to a backdrop of ongoing ETF inflows and active on-chain participation. While the price remains under pressure, the inflows into spot XRP ETFs and sustained whale engagement provide a counterbalancing force that could underpin a bottom if liquidity remains ample and risk appetite stabilizes. The path forward will likely hinge on whether XRP can stabilize above critical support levels and whether on-chain signals translate into durable buying interest.

What to watch next

  • Whether XRP can hold above $1.12 on a closing basis, which would delay a deeper pullback.
  • How ETF inflows trend over the next several sessions and whether AUM surpasses the $1.05–$1.10 billion range.
  • Any new regulatory or product developments affecting XRP ETFs or custodial structures that could influence liquidity and investor confidence.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

Source link

Advertisement
Continue Reading

Crypto World

Stablecoin Conversion Costs Highest in Africa, Data Shows

Published

on

Stablecoin Conversion Costs Highest in Africa, Data Shows

Africa recorded the highest median stablecoin-to-fiat conversion spreads among tracked regions in January, according to data observed by payments infrastructure company Borderless.xyz, covering 66 currency corridors and nearly 94,000 rate observations.

The regional median spread was 299 basis points, or about 3%, compared with roughly 1.3% in Latin America and 0.07% in Asia. In Africa, conversion costs ranged from about 1.5% in South Africa to nearly 19.5% in Botswana. 

The data measures “spreads,” or the gap between a provider’s buy and sell rate for a stablecoin-to-fiat pair. Similar to a bid-ask spread in traditional markets, it reflects the execution cost paid when converting stablecoins into local fiat currency. 

The findings suggest that while stablecoins are promoted as a cheaper alternative to traditional remittance rails, actual costs vary widely across African markets and appear closely tied to local provider competition and liquidity. 

Advertisement
Regional median spreads for stablecoin conversions. Source: Borderless.xyz

Competition drives pricing gaps

Borderless.xyz found that markets with several competing providers generally had conversion costs between about 1.5% and 4%. In markets with only one provider, costs often exceeded 13%. 

Botswana recorded the highest median conversion cost in January at 19.4%, though pricing improved later in the month. Congo’s costs were also above 13%. By contrast, South Africa, which has a more competitive foreign exchange market, showed costs of about 1.5%. 

The report suggested that these differences are driven primarily by local market conditions, such as liquidity and competition, rather than the underlying blockchain technology. In countries where multiple providers operate, conversion costs stayed closer to the regional average. 

Conversion costs in different competition levels. Source: Borderless.xyz

Related: Uganda opposition leader promotes Bitchat amid fears of internet blackout

Stablecoins versus traditional foreign exchange

The report also compares stablecoin mid-rates with traditional interbank foreign exchange rates, measuring what it calls the “TradFi premium.”

This metric reflects whether stablecoin exchange rates are cheaper or more expensive than traditional FX mid-market rates. 

Advertisement

Across 33 currencies globally, the median difference between stablecoin exchange rates and traditional mid-market foreign exchange rates was about 5 basis points, or 0.05%, indicating the two were largely in line.

In Africa, the median gap was wider at roughly 119 basis points, or about 1.2%, though the difference varied significantly depending on the country.

On Jan. 24, economist Vera Songwe said at the World Economic Forum in Davos that stablecoins are helping reduce remittance costs across Africa, where traditional transfer services can charge about $6 per $100 sent.

The new data adds context, suggesting that while stablecoins offer faster settlement and potential savings compared with legacy services, conversion costs within specific corridors remain elevated. 

Advertisement