It also includes provisions that seek to forbid the CBDC from being “programmed” to limit the goods it can be used to buy. The proposal states, 

“The digital euro would be available alongside existing national and international private means of payment, such as cards or applications and it would work like a digital wallet where people and businesses could pay with the digital euro anytime and anywhere in the euro area.” 

At a June 28th press conference to present the plans, European Commissioner Mairead McGuinness said she expected the debate over a digital euro to continue and intensify – but added she hoped the extra potential options a digital euro brings, such as its use in remote rural areas, could persuade skeptics. 

“Somebody falling in love with digital currency is stretching it,” said McGuinness, the commission’s most senior financial services official, pulling a wad of banknotes out of her pocket. “It’s easier to talk about cash because it’s tangible.” 

The law doesn’t bring the digital euro into bean as such – since it’s the ECB that needs to decide whether to issue the CBDC. Officials argue the state-backed digital currency offer features private payment means aren’t always able to – allowing payments between friends and with higher data protection standards. 

Yet despite years of technical work by the central bank, many remain skeptic – including some of the lawmakers and governments who would need to approve the commission’s new bill. 

The initiative has also faced skepticism from commercial banks, for whom the state-backed currency represents competition to their own digital payments system, and potentially an alternative to savings accounts too. 

“Alongside the main features of a digital euro, it is important to discuss the broader questions about its added value,” said Wim Mijs, chief executive officer of lobbying organization the European Banking Federation in a statement, arguing the digital euro would need firm limits on holdings and transactions to prevent deposits fleeing from banks. 

In a statement published Wednesday, the ECB welcomed the commission’s plans and confirmed it will decide in the fall whether to move to the next phase of its project. 

“The euro is the most tangible symbol of European integration,” said ECB president Christine Lagarde in a statement to the press. “We look forward to continuing working together with other EU institutions towards a digital euro to ensure our currency is fit for the digital age.” 

The legal proposals seek to ensure the digital euro can be used offline, offering a level of privacy equivalent to that of cash. It forbids the CBDC from being “programmed” to limit the goods it can be used to buy, though officials say it could still be used to underpin conditional payments, such as a monthly payment for a utilities bill, or a more complex smart contract.

Crypto Custody Firm Ledger Introduces Institutional-Grade Trading Network

Hardware wallet provider and crypto security firm Ledger is reportedly expanding into the institutional trading space through the launch of ‘Tradelink’ – a new trading network for institutions that enables custodial trading via select exchanges and custodial partners. 

Sebastien Badault, VP Enterprise at Ledger, stated, 

“This solution connects custodians, OTC brokers and exchanges, and means you can trade without having funds on the exchange, so it removes that exchange risk. Looking forward, there’s going to be a lot more regulation potentially around being able to distribute your risk, so that aligning fund managers and multiple custodial partners will definitely be a big plus.” 

In the wake of events like last year’s bankruptcy of FTX, firms are looking for transparency and alternatives to having assets held on vertically integrated crypto exchanges. 

There are also concerns over how market infrastructure will pan out in light of recent lawsuits from U.S. regulators against Binance and Coinbase, said Badault. 

Ledger’s enterprise network is open to multiple custodial partners, such as Komainu (a Nomura-backed group of which Ledger is a member), TetraTrust, Etana, Crypto Garage, Damex and Kryptodian. 

Ledger said being open to multiple custodial platforms means firms using the new network will not be locked in. Ledger Enterprise also offers real-time tracking of collateral balances and operational status for all participants, with zero transaction fees, according to a press release. 

“Ledger’s innovative Trading Operation technology not only heightens security, but also fosters a regulation-friendly landscape for institutional trading,” Crypto.com President & COO Eric Anziani said in a statement.