The current scenario in the energy sector, with high prices and shortages, has led the European Central Bank to take a more serious stance regarding possible measures if inflation in the region continues to rise.

Currently, there is considerable concern and mistrust due to rising fuel prices, shortages, and increased electricity prices as a consequence of the Iran conflict.

In this regard, the Governor of the Bank of France and member of the ECB Governing Council, François Villeroy de Galhau, stated that “the institution will do whatever is necessary to bring inflation back to the 2 % target in the medium term.”

Amid the escalating conflict in the Middle East, Eurozone inflation rose to 3 % in April, up from 2.6 % in March. “The increase coincided with a surge in energy prices, particularly gasoline, diesel, and jet fuel, which have skyrocketed in recent months.”

The ECB’s main concern is that the effects of the war will spill over into key sectors for each country, such as “wages, inflation expectations, and pricing across the economy—what is known in monetary policy as second-round effects.”

M.Pino

Source: diariobitcoin

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La entrada ECB to implement measures if inflation continues to rise in the region apareció primero en Bitfinance.

Payments, transfers, and other transactions in euros within the European Union are carried out using Mastercard and Visa. As a response to eliminate dependence on these intermediaries, the European Central Bank has implemented the Wero digital wallet.

This tool already has tens of millions of users in Germany, France, and Belgium. With its implementation, the region is moving toward eliminating costs associated with using US or Chinese payment systems and toward protection against sudden disruptions due to events such as armed conflicts or cyberattacks.

With Wero, “a digital wallet created by European banks and payment companies to eliminate card networks,” instant bank transfers are made, “eliminating intermediaries, reducing fees, and keeping data within Europe.”

The EU wants to free itself from payments using foreign systems, as the global dominance of Visa and Mastercard represents a vulnerability for the region, as ECB President Christine Lagarde has pointed out.

M.Pino

Source: euronews

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La entrada The EU needs a payment system independent of Mastercard and Visa apareció primero en Bitfinance.

The US dollar appears to be struggling in the global market. Given this decline in the most widely used currency in international trade, the President of the European Central Bank, Christine Lagarde, urged the bloc’s governments to strengthen the economic foundations of the euro.

In her speech in Paris, Lagarde said that it is not enough to “resist external shocks.” The official “warned that the eurozone must transform its economic openness into resilience if it wants to maintain the currency as a pillar of stability in times of global uncertainty.”

US sollar weakness

Lagarde emphasized that the dollar’s retreat internationally “is reopening the debate about the dollar’s role as a global reserve currency. In this context, some European officials believe that the so-called global euro moment is approaching, an opportunity to consolidate its role as an alternative to the dollar.”

She also insisted that Europe needs an environment where capital flows to productive sectors, fostering investment and growth aimed at strengthening the euro’s international credibility.

This is achieved through the harmonization of regulations, tax systems, and bankruptcy laws that currently differ among countries. “Structural problems such as high energy costs, stagnant productivity, and the unwillingness of member states to finance common projects that benefit the entire union” must also be addressed.

The EU seeks to address current challenges with mechanisms such as the Savings and Investment Union, “a revamped version of the former Capital Markets Union,” to create a single capital market that “incentivizes Europeans to invest in financial assets and reduces dependence on external financing.”

M. Pino

Source: diariobitcoin

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La entrada Christine Lagarde proposes reinforcing the euro against the weakness of the US dollar apareció primero en Bitfinance.

In the face of a power emergency, shopping and payments become a headache. As an alternative that provides peace of mind and security to the population, the European Central Bank (ECB) has recommended keeping some cash.

This suggestion, in a context marked by electronic payments, cryptocurrencies, and the disappearance of fiat money in several countries, even due to government measures, seems contradictory.

However, it is a way to provide protection for Europeans in the event of another power outage like the one that affected Spain, France, and Portugal, among others, a few months ago. At that time, paying for necessities and utilities was impossible online.

For this reason, in its latest report, the ECB highlighted the importance of having cash in households in the face of global crises. “The European institution recommends having a cash reserve of 70 to 100 euros per person, or at least 72 hours of provisions. This sum, whether for a family of two, three, or four members, would be sufficient to cover basic needs for at least three days.”

M.Pino

Source: 20minutos

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La entrada ECB recommends keeping cash as an emergency alternative apareció primero en Bitfinance.

In September, eurozone inflation exceeded analysts’ projections, closing the month with a 2.2 % increase. This trend was driven by rising prices for goods and services, particularly energy costs.

According to the European Central Bank (ECB) forecasts, “Eurozone inflation is expected to average 2.1 % in 2025, 1.7 % in 2026, and 1.9 % in 2027.  As for the underlying inflation rate, the projection is 2.4 %, 1.9 %, and 1.8 % in 2025, 2026, and 2027, respectively.”

The eurozone manufacturing sector is entering a contraction, with no signs of stabilization in sight for the region’s countries, due to a decline in new orders.

In addition to these factors, there are the consequences of tariffs imposed by the US government, internal problems in each country, armed conflicts, and fluctuations in global energy demand.

M.Pino

Source: bolsamania

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La entrada Eurozone inflation surpasses expectations apareció primero en Bitfinance.

Transforming euro banknotes into digital format is not a new idea. However, there are currently compelling reasons that are leading the European Central Bank (ECB) to accelerate the process toward a solution that safeguards the region’s economic sovereignty.

Two of the most notable reasons for accelerating the process of creating the digital euro are, on the one hand, the decline in cash use, and on the other, the adoption of foreign electronic payment tools, such as Visa and MasterCard.

Towards a digital monetary union

Last July, Piero Cipollone, a member of the ECB’s Executive Board, stated: “The role of cash will be significantly reduced if we do not offer a digital equivalent (…). A digital form of cash would protect our sovereignty and ensure that our monetary union is also a digital monetary union.”

However, for the digital euro to become a reality, there are still aspects to be analyzed, such as the legal framework for this format, the degree of anonymity, the relationship with commercial banks, and the limitations that will prevent it from replacing bank money.

Protection of cash

Throughout this process, the Eurozone does not intend to eliminate cash. On the contrary, it seeks to protect it, as it is included as the second proposal — after the digital euro — in the Single Currency Package launched in 2023, which proposes “safeguarding the role of cash and its acceptance as an accessible means of payment for individuals and businesses in the Eurozone (the regulation on the legal tender of cash).”

Thus, “the mandatory acceptance of banknotes is foreseen, albeit with some exceptions, and the need for a well-distributed banking infrastructure to guarantee their availability throughout the Eurozone.”

The measures adopted by the EU and the ECB are aimed at safeguarding the region’s financial sovereignty and protecting citizens, as well as democratizing access to money.

M.Pino

With information from FinanzasDigital and CincoDías

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La entrada ECB accelerates development of the digital euro apareció primero en Bitfinance.

The European Central Bank unveiled its new platform for payments using the digital euro. Around 70 entities are participating in the initiative, including banks, fintechs, startups, and payment service providers.

The ECB had been working on this project with the aim of “assessing its feasibility and functionality before its possible official implementation” for digital transactions in the eurozone.

Following the call for proposals for this application in October 2024, working groups were formed to analyze aspects such as automatic transactions, technical support, access to financial services for the unbanked, and the necessary digital devices.

One of the proposals they are considering is “the possibility of opening digital wallets in post offices, which would ensure that any citizen can use the digital euro without the need for traditional banking infrastructure.”

M.Pino

Source: iproup

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La entrada ECB launches platform for the use of digital euro apareció primero en Bitfinance.