Europeans Prefer to Use Cash and Reject the Idea of a Digital Euro

Citizens see a central bank digital currency as a threat to their freedom and privacy. There is a conflict between the protection of private data and the laws under study.

European citizens reject the idea that the European Central Bank (ECB) issues a digital euro. That is evident in the more than 10,000 public comments on the official website of the European Commission.

The institution that promotes the laws to govern the eurozone undertook a public consultation to know the opinion of citizens. People had to comment on the possible establishment and regulation of a central bank digital currency (CBDC).

The European Commission will keep the consultation open until June 14th, but most comments favor ruling out the digital euro. Those opinions indicate that people prefer to use more private payment methods, such as cash.

An anonymous person expressed that he rejects the digital euro as nobody needs it. He said it would just be a tool to eliminate cash and would make people dependent on the central government.

Other Europeans like Dieter Schömer from Germany believe that the digital euro would risk freedom. Its issuance by a central financial institution would mean that the state would exert greater control over citizens.

Christy Márquez, who lives in Germany, thinks that the ECB should not abolish cash as it means freedom. She commented that a CBDC could be convenient but controllable, which should not happen with the wrong people or governments.

The European Commission extended the reception of comments two months after the ECB announced the start of a legislation process. The financial institution aims to create a regulatory legal framework for implementing a digital euro.

The different regulatory entities and the community are still stating their opinions. The European Commission seeks to measure the possible risks and benefits of issuing a CBDC. The enactment of that law to launch this digital asset might occur in 2023

One of the objectives of the ECB is the issuance of a digital euro for European citizens to have along with cash. In other words, the financial institution does not contemplate abolishing bills and coins that are in use today.

However, the public consultation contains many comments from people who fear that the launch of a European CBDC will imply the end of cash.

A Digital Euro Would Hurt the Privacy of Citizens

The comments collected reveal that the European inhabitants feel a great attachment to cash. They state that this form of payment is untraceable, allows anonymity, and offers more protection of private data.

ECB researchers working to understand what a digital euro needs to gain adoption have clarified that Europeans value privacy. Fabio Panetta noted that citizens would think highly of payment options that allow controlling personal data.

Panetta, the project leader, commented that concern about the possible circumvention of regulations presents challenges with the design of a CBDC.

He explained that one of the options handled is that the digital euro allows payments in small amounts. The reason for that is that people could make anonymous transactions.

However, there is a conflict between the protection of privacy and the laws understudy, as legislators seek to approve stricter controls.

By Alexander Salazar

Report Revealed by the Ethereum Foundation Highlights that it Counts on 0.3% of the total Circulating ETH

These figures revealed by the Ethereum Foundation treasury showed that the organization has more than USD 1,000 million in ETH funds, which would get destined to support its work in the years to come.

A report recently revealed by the Ethereum Foundation details that the organization responsible for encouraging the adoption and use of the project’s Blockchain technology currently has 0.3% of the total supply of ETH in circulation.

The Report Published by the Ethereum Foundation

The report came from the Ethereum Foundation treasury, which details that as of March 31, the organization had about USD 1.3 billion in ETH and at least USD 300 million in investments outside the crypto environment, and other USD 11 million in other countries’ digital assets.

The Ethereum Foundation has published for the first time an annual financial report highlighting the current conditions of its reserves, but what it does regularly is boost funding and contributions to back up projects that carry out their activities on the Ethereum network.

Miyaguchi shared the report revealed by the Ethereum Foundation through its social media and invited those interested in knowing more about the organization to stay tuned for the Devconnect event, which will happen soon in Amsterdam.

The Available Funds

Taking the data revealed by the Ethereum Foundation in the report and validating with market information, 0.3% of the ETH currently circulating in the market would correspond to an estimate registered at more than 361,000 ETH at the current exchange rate.

Regarding the breakdown of the funds, the Ethereum Foundation explained that it made a total expenditure of USD 48 million in ETH funds, which got divided as follows:

For ZK’s applied research and development area, USD 3.6 million got allocated. And finally, apart from the previously mentioned figure, there was a total of USD 19.6 million destined for its ecosystem backup program.

The Merge is Creating Hype

For both developers and the community, the bulk of expectations got placed on The Merge, the next major update intended for the Ethereum network, with which the Proof-of-Stake (PoS) algorithm will officially begin to operate to optimize and improve block processing.

Although the arrival of this update got intended for the next June, the leading developer of Ethereum, Tim Beiko, confirmed that this will not be possible as such but that they continue to work to get to this in the shortest possible time.

By: Jenson Nuñez

The Price of BTC Still Shows No Signs of Bearish Exhaustion

Since the long-term trend is bullish, the outlook would only be at risk if the price broke through support at USD 32,000. The price could drop toward USD 36,000, but it would change if demand is near USD 40,000, causing a short-term bullish transition.

The bears are still creating problems in the crypto market, producing a short-term downward forecast for the price of Bitcoin (BTC).

Bitcoin is trading at around USD 40,832 and has accumulated a gain of 2.5% in the last 24 hours. Its trading volume is above USD 30.88 billion, and its market capitalization is approximately USD 776.45 billion.

The bearish inclination has led the market sentiment to fall into fear territory again, and sales might extend in the short term. However, those with their sights on a longer time frame will take advantage to accumulate more. The nervous selling by weak hands could be about to dry up.

The weekly metrics summary by CryptoQuant indicates that the outlook for the price of BTC is quite encouraging. Most indicators are currently neutral, but the second-largest group of metrics is bullish.

The volume of reserves on exchanges remains at a minimum of 2.5 years. Holders transfer their coins to cold wallets with their eyes on the medium-long term.

Most metrics related to the activity of the whales are bullish. While demand is on the rise, supply is becoming increasingly limited.

The Technical Analysis of the Price of BTC

The weekly BTC chart provides a forecast that is not so pessimistic. However, the recent behavior of the price indicates that there could be more selling in the short term.

A two-week bearish direction signifies a pullback in the value of BTC after a significant rebound to the upside.

The recent price drop has not yet shown signs of exhaustion. For that reason, the price will likely be in trouble for a few more days.

However, there is a succession of increasingly high lows, and the price may reach a new point in that trend.

The price crosses the 8-week EMA and 18-week SMA to the upside, but the recent selling pressure does not make that signal reliable.

Since the long-term trend is undoubtedly bullish, the outlook would only be at risk if the price breaks through support at USD 32,000. At the moment, that is an unlikely situation to occur.

The worst that could happen would be sales of up to USD 36,000 in the short term. However, there may be enough demand to resume the previous bullish direction before that.

The Daily Analysis of the Bitcoin Price

The daily BTC chart shows a short-term downtrend, which may continue to cause problems in the upcoming days.

The price crosses the 8-day EMA and 18-day SMA to the downside. Those indicators have served as dynamic resistances.

The price recently rallied slightly, reaching what seems to be a new lower low before dropping further.

The most likely BTC forecast is a drop toward USD 36,000 this week.

That would change if the price achieves demand near USD 40,000 and breaks through the resistance at USD 42,750. That would give way to a short-term bullish transition.

Breaking above the 200-period SMA around USD 48,000 would signal that medium-/long-term holders expect to confirm the resumption of the higher trend.

By Alexander Salazar

Grayscale CEO Confirmed that it is “a matter of time” for the SEC to Give the First Bitcoin ETF in the US its Approval

For the director of Grayscale, the fact that the SEC approved the Bitcoin futures ETF presented by Teucrium completely changed the view.

The CEO of Grayscale Investment, Michael Sonnenshein, clarified that it is only a “matter of time” before the SEC finally gives the green light and officially approves the first Bitcoin ETF in the US markets.

Grayscale CEO Feels Optimistic About an ETF

This information got highlighted by Sonnenshein during an interview led by the ETF Edge program broadcast by CNBC, where the director of Grayscale feels incredibly optimistic because the SEC recently approved the application for a Bitcoin futures ETF to Teucrium at the beginning. A monthly report highlighted that the proposal got shielded by the Securities Law of 1933 and not within the Investment Company Law of 1940.

Sonnenshein also expressed that approving Teucrium’s proposal for a Bitcoin futures ETF under Law 33 invalidates the insecurities and allegations suggested by the SEC regarding the rejected proposals.

Therefore, the CEO of Grayscale highlighted that doing it this way might include an independent board of directors, accounting, and custody policies with vital differences.

He added that it is a question of when the SEC fails to view two similar topics, the futures ETF and the cash ETF, through the same lens; then, indeed, it is a potential ground for a possible disruption of the Administrative Procedure Act.

Outlook Might be Favoring Grayscale

Teucrium receiving the green light for its Bitcoin futures ETF caused many expectations among analysts and specialists. However, there have been no problems regarding this type of exchange-traded fund; this could be a path where all those proposals that intend to count on direct exposure to the leading digital asset could go.

The Bloomberg analyst, James Seyffart, highlighted that this approval could be a suitable procedure for a Bitcoin ETF in the US.

This approval would eventually go public since it could get covered under the Securities Act of 1933. It establishes rules that could be beneficial for cases like those of Grayscale, which tries to turn its Grayscale Bitcoin Fund (GBTC) into a local exchange-traded fund.

Grayscale has an ongoing application with the SEC to convert its GBTC into an ETF based entirely on Bitcoin. Until July, the regulator has to present an official verdict, which the company plans to appeal and sue.

While the bid for a Bitcoin-based ETF is still going on, Teucrium got listed alongside ProShares, Valkyrie, and VanEck as the entities fully authorized to carry out activities with an exchange-traded fund connected to BTC futures.

Keep in mind that these are entirely different products since digital currencies do not get regulated by the SEC, which has severe doubts about possible market manipulation and the extreme volatility experienced by the price of the leading exponents for a Bitcoin ETF.

By: Jenson Nuñez

The Association of Russian Banks Calls on Legislators to Ban Non-Custodial Cryptocurrency Wallets

Non-custodial wallets allow users to store cryptocurrencies intermediaries, reducing the risk of frozen, blocked or seized holdings. The increase in the adoption of Bitcoin suggests that people turn to it as a safe haven amid the ravages of inflation.

The Association of Russian Banks, which includes over 300 banks, has called on lawmakers to ban the use of non-custodial wallets. Local news agency Izvestia reported that those financial institutions consider the storage of cryptocurrencies outside of centralized exchanges a criminal act.

Unlike accounts on centralized exchanges, non-custodial or self-custodial wallets allow users to store cryptocurrencies without relying on a third party. That reduces the risk that the intermediary could freeze, block or seize their crypto asset holdings. Investors can be their own banks by fully controlling their coins and the private keys associated with their wallets.

However, Anatoly Kozlachkov, the vice president of the Association of Banks of Russia, says Russian bankers disagree with letting citizens control their cryptocurrency holdings. That organization has developed a framework for the foreclosure of crypto assets stored in non-custodial wallets. They argue that they find it hard to seize cryptocurrencies from the wallets of debtors and criminals.

The Crypto Environment Receives Support from the Government of Miami

Francis Suárez, the Mayor of Miami, recently said that his city had received Bitcoin well, considering the increase in its adoption. He talked about a complex economic landscape in which crypto assets can play a crucial role. The official believes that blockchain technology has emerged as a solution amid the ravages of inflation.

Suárez noted the approval given by the local government to Bitcoin and the crypto world in general. He expressed that he was aware of the growth of the inflation round affecting the US economy. He referred to the possibility that citizens can use cryptocurrencies as a store of value.

He commented that his government cares about inflation points, confirming his support for the crypto environment. In addition, he highlighted that they are experiencing a generation change, meaning that citizens would become familiar with the crypto market.

In that regard, Peter Smith, a representative of Blockchain.com, stated that they are interested in the favorable regulatory framework proposed by Miami. That would allow connecting the traditional finances of the region with the features of distributed ledger technology (DLT).

Iran to Tighten Sanctions against Using Subsidized Energy In Cryptocurrency Mining

The Iranian government will increase sanctions using subsidized energy in cryptocurrency mining. The measure is a further step toward tighter regulation in the country, which has suffered from power shortages in the last few years.

The Power Generation, Distribution and Transmission company talked to the newspaper Tehran Times about that situation. They reported that the government plans to increase the penalty rates for cryptocurrency mining operators using subsidized electricity.

Mohammad Khodadadi, an official with the company, specified that using subsidized electricity for that activity is illegal. Only households and industrial, agricultural and commercial subscribers can benefit from that service.

By Alexander Salazar

A German Analyst Says that Europe Has Not Developed Its Stablecoin for Several Reasons

The head of Strategy of Unstoppable Finance sees the MiCA bill as a stumbling block. The analyst considers that creating a European stablecoin is urgent to avoid the influence of the United States.

Patrick Hansen, head of strategy of DeFi startup Unstoppable Finance, recently explained why Europe has not yet developed its own stablecoin. It would allow the region to avoid its dependence on the United States in regulatory matters, among other things.

The analyst stated the main reason for not launching a stablecoin regulated by the European Union. The Central Bank of Europe (ECB) set a negative interest rate (-0.5%) for deposits.

Hansen described a hypothetical case in which Europe has developed a stablecoin like USD Coin (USDC) from the company Circle. He called on his Twitter followers to imagine a EURC with a USDC market capitalization of EUR 50 billion. He explained that the issuing firm would have to pay EUR 250 million of interest on the euro reserves due to the regulations in force.

He considers it is hard for a company to build a sustainable and profitable business model if it has to pay those amounts. The regulations contemplated in the Markets in Crypto Assets (MiCA) bill will add to that. That rule proposes a regulatory framework for cryptocurrencies through a licensing regime to issue a stablecoin in the eurozone.

Hansen also argued that some USD-pegged stablecoins are experiencing a massive network effect from their use in various businesses and their corporate adoption. The analyst referred to USDC, USD Tether (USDT) and TerraUSD (UST), the latter of which has the third-highest accumulated value in the market.

The expert concluded that that situation is an often ignored collateral damage to the monetary policy of the ECB on the European crypto space. He added that this would hardly change if stablecoin issuers have to hold 1-1 cash and cash-like assets in reserve and negative interest rates prevail.

Hansen Is Not Alone in That Analysis

In March, Philipp Sandner, head of the Frankfurt School Blockchain Center in Germany, said that Europe lags behind. He considers that the continent lacks a significant number of stablecoins and is making slow progress in its initiative to launch a CBDC.

He added that the ECB might accelerate its development of a digital currency because everyone is pushing it to do it. However, he pointed out that it is a large-scale project that will require a lot of time and work.

In addition, Sandner recalled that regulators had rejected stablecoins after the launch of Libra, the Facebook cryptocurrency. He explained that the economic ministers of Germany, France and other countries were happy because the project had left the continent.

Europe Needs to Create a Stablecoin Urgently

Patrick Hansen has studied the development of European policies for crypto assets and has explained why the continent cannot launch a stablecoin. However, the analyst does believe that they should create a cryptocurrency of that type for three reasons that he set out in November.

First, he said that European Union DeFi users are constantly prone to currency risks.

Second, the stronger USD stablecoins, the greater the political influence of the United States, as they regulate and supervise USDC and USDT, among others. Hansen commented that the EU should not want future stablecoin-based payment systems to become as politicized as current fiat systems.

Finally, Hansen believes that the monetary policy of the ECB could lose its effectiveness. He highlighted that growing financial/economic activity in the EU denominated in USD would undermine the validity of that legal document.

By Alexander Salazar