According to a survey of European Central Bank (ECB) staff, people are generally dissatisfied with the leadership ability of ECB President Christine Lagarde. The survey was conducted from December 12 to December 22, 2023, and recent results show that over half of respondents rated Lagarde's performance as "very poor" or "poor," with some concerned that the former head of the International Monetary Fund (IMF) may not act in accordance with her stated values. (CNBC)

On Tuesday, the European Parliament held a hearing on the digital euro. The EU's plan to launch a retail central bank digital currency (CBDC) has been opposed by legislators who question the necessity of introducing such a currency in a jurisdiction with high payment efficiency, whether citizens' privacy will be protected, and the more controversial issue of whether it can be used to expand state control. The hearing aims to help lawmakers better understand this topic when considering legislative proposals. However, invited experts disagree on almost all issues, including whether the digital euro will replace cash and the restrictions on holding digital euros. (CoinDesk)

European Central Bank President Christine Lagarde recently proposed a groundbreaking idea that could completely change Europe's financial regulatory framework. Lagarde advocates for the establishment of a European institution that corresponds to the United States Securities and Exchange Commission (SEC). This move aims to enhance Europe's financial capabilities in order to effectively respond to urgent challenges in the region. The establishment of a European Securities and Exchange Commission, which replaces the current piecemeal national regulatory agencies, is considered crucial for raising the large amount of funds needed to address these challenges. This new regulatory agency will not only simplify regulation, but also improve the efficiency of the entire European capital market. In addition, Lagarde emphasized the need for integration between European national financial exchanges.

Some large fund management companies in Europe believe that traders betting on the European Central Bank not raising interest rates again are wrong. LGIM, Vanguard, and Robeco all stated that the eurozone, as a net energy importer, is particularly vulnerable to rising energy prices if the Middle East crisis escalates. This makes eurozone short-term government bonds especially fragile. Ales Koutny, the head of international rates at Vanguard, agrees that the market is betting on the European Central Bank pausing its rate hike next week, but he also believes that traders are too confident in their bet that the bank will not tighten policy further in the coming months. The market underestimates the possibility of the European Central Bank raising interest rates again, while also underestimating the possibility of the Federal Reserve raising rates.

The European Central Bank (ECB) has announced that it will begin the preparation phase for the digital euro project, which will last for two years. The ECB plans to lay the foundation for the possible issuance of a central bank digital currency (CBDC) beginning on November 1, but the decision to issue a digital euro will only be considered by the Governing Council once the European Union's legislative process has been completed. The preparation phase will focus on finalizing rules for the digital currency and selecting possible issuers, followed by testing and experimentation in accordance with user feedback and requirements under the central bank. The rollout of any digital euro is likely to attract the attention of regulators and policymakers, who will have their election for the European Parliament in June 2024.

The European Central Bank (ECB) has followed the United States Federal Reserve's lead by raising three key interest rates by 25 basis points in an attempt to combat inflation. Despite inflation declining, the ECB has admitted that it is still expected to remain too high for too long. The rapid increase in rates could negatively affect the expansion of loans in the European region and economic activity. Investors are looking towards Bitcoin and other cryptocurrencies as a hedge against inflation, as Bitcoin has remained stable despite the growing rates.

Bitcoin's value briefly dropped below $29,000 on Monday due to concerns about expected rate hikes from the Federal Reserve and European Central Bank. The world's largest cryptocurrency fell by 2.9% over the past 24 hours to $29,044. The Federal Open Market Committee is expected to announce a rate decision on Wednesday, with analysts predicting a 25 basis point hike to bring its target range to 5.25-5.50%. The ECB is also expected to raise rates by 25 basis points to 4.25% on Thursday, which could impact bitcoin's consolidation around the $29,000 mark.

June 29 (Cointime) - The European Central Bank (ECB) has announced plans to begin exploratory work on financial market settlement using distributed ledger technology (DLT) in 2024. The aim is to find ways to settle transactions between financial institutions for securities or foreign exchange, while also developing a retail central bank digital currency (CBDC) called the digital euro.

June 28 (Cointime) - The European Central Bank (ECB) is set to decide on the creation of a digital euro by the end of October, according to ECB President Christine Lagarde. However, Lagarde also stated that widespread adoption of a digital euro is not expected in the near future.

June 21 (Cointime) - The European Central Bank and European Commission are collaborating on the technical aspects of a digital euro, but political leaders are not showing much interest. Proposed legislation for the central bank digital currency addresses concerns about privacy, offline usage, and distribution, but political issues have yet to be resolved.