European Central Bank

The central bankers' central bank, the Bank for International Settlements (BIS), has laid out a seven-point plan designed to help countries prevent cyber hacks on the new wave of digital national currencies under development.Around 130 countries are now exploring central bank digital currencies (CBDC) to keep up with technological change, but there are worries that the online nature of them could make them a major target for criminals and hostile states. The BIS acts as an umbrella body for the U.S. Federal Reserve,…

Shares of AI-focused companies will be a major driver of returns for developed markets in a tough economic environment, BlackRock Investment Institute said, citing a current rally that is concentrated in a handful of technology stocks."S&P 500 gains have become increasingly concentrated in a handful of tech stocks, surpassing levels seen in the 2000s tech boom," BlackRock Investment Institute's team wrote in a mid-year outlook note. "We think this unusual equity market shows a mega force like AI can be a big driver of…

The European Central Bank could inject cash into the banking system if the introduction of a digital euro were to cause an outflow of deposits, ECB board member Fabio Panetta said on Monday.Ahead of the ECB's decision about developing a digital euro in October, European banking lobbies have warned that a central bank-backed currency could take deposits and business away from commercial lenders.Seeking to dispel such fears, Panetta said the ECB could "compensate" banks if citizens ditch them in favour of the new currency,…

Members of the G20 agree that a globally coordinated understanding would be required not only to deal with the challenges posed by crypto assets but also to regulate them, Union Finance Minister Nirmala Sitharaman has said. The grouping has responded to the issue with alacrity and during India's presidency of the G20, a "synthesis paper" will be taken up on matters related to crypto assets, the minister told a press conference here on Thursday. "I am glad to say that there is a greater acceptance among all G20 members,…

The digital version of the euro currency will be free to use and available to all but the European Central Bank does not want to keep any personal data on its users, ECB board member Fabio Panetta said on Monday.The ECB is working on a digital version of its currency and is in the process of outlining the broader design, also hoping to alleviate concerns that the digital currency could disrupt the financial system and give the central bank too much data on citizens.A digital currency is a direct claim on the central…

The European Central Bank said Bitcoin is being artificially propped up and should not be legitimised by regulators or financial companies as it is more akin to gambling. Bitcoin and other cryptocurrencies have been variously presented as an alternative form of money and a shield from the inflationary policies pursued by major central banks such as the ECB in recent years. But a 75 percent fall over the past year, just as inflation reared its head, and a string of scandals including the collapse of the FTX exchange this…

The "questionable practices" at now collapsed crypto exchange FTX would not have been allowed to happen under European Union rules that need to be finalised urgently, a senior European Commission official said. The crash in bitcoin led to a "crypto winter", which saw the collapse of crypto exchange FTX, and earlier this week cryptocurrency lender BlockFi filed for bankruptcy protection. The European Union has reached agreement on groundbreaking markets in cryptoassets rules (MiCA) for licensing and supervision, expected…

The annual rate of consumer-price inflation in the eurozone increased to double digits in October, reaching a record and highlighting the challenges facing the European Central Bank after it signaled a coming slowdown in the pace of its rate increases.The broad measure of consumer prices has risen sharply since Russia’s invasion of Ukraine and Moscow’s decision to throttle natural gas supplies to Europe to undermine Western support for Kyiv. By mid-September, Russia had cut its supplies by 80% of their year-earlier total.…

Inflation in the eurozone rose to a fresh record in August, underscoring the economic shock dealt by Russia’s war in Ukraine and increasing the pressure on the European Central Bank to respond by raising interest rates aggressively next week. Eurozone consumer prices were 9.1% higher than a year earlier, a pickup from the 8.9% rate of inflation recorded in July, the European Union’s statistics agency said Wednesday. That is the highest rate since records began in early 1997.…

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