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Sujha Sundararajan

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Sujha has been recognised as Women In Crypto 2024 by BeInCrypto for her leadership in crypto journalism.

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July 2, 2025

The European Central Bank (ECB) Governing Council, on Tuesday, approved a two-track plan that will utilise central bank money for distributed ledger technology (DLT) transactions.

The first short-term track approach, dubbed “Pontes”, will connect DLT platforms with Eurosystem TARGET services, to be launched by 2026. The track will ensure the free flow of cash, securities and collateral across Europe.

Meanwhile, before the launch of the Pontes pilot in Q3 2026, the ECB will consider DLT-based trial and experiment requests.

Piero Cipollone, Member of the Executive Board of the ECB, believes that although DLT and tokenization are relatively nascent, they “are likely to offer new ways of improving the settlement of financial transactions.”

“The decision is in line with the Eurosystem’s commitment to supporting innovation without compromising on safety and efficiency in financial market infrastructures,” the release read.

Long-Term ‘Global Level’ Approach

The ECB has laid out its long-term track plan, “Appia,” which will facilitate operations at the global level. The bank noted that this approach will analyse more DLT-based solutions and collaborate with public and private stakeholders.

“This will also include international operations, such as foreign exchange settlement, and engagement in international initiatives,” the ECB noted in a report outlining the results of the exploratory work.

The ECB is yet to define the precise approach to be followed in the long-term, it added. However, the central bank will focus on “improving the efficiency and competitiveness of current financial markets for securities and payments, without compromising on safety.”

ECB Aims to Finish Digital Euro Prep Phase by October

Cipollone said last year that the bank is looking to finish the preparation phase of the digital euro by October 2025.

However, lawmakers are hesitant to trust the central bank, raising doubts about whether a digital euro could debut. The ambiguity came after an outage that occurred with the TARGET 2 (T2) payment system early this year. Big transactions are held in the T2 payment platform.

The bank already conducted exploratory work on new techs like DLT between May and November 2024. During the trial, 64 participants conducted over 50 experiments.

Piero Cipollone added that Pontes and Appia approaches will be built on these technologies, given their recent developments and how they have sparked growing interest across the financial sector.

The European Union is preparing to relax its stance on foreign-issued stablecoins, potentially allowing U.S. dollar-backed tokens like USDC and USDT to circulate freely within the bloc, the Financial Times reported on June 25.

According to the report, the European Commission will soon issue formal guidance enabling stablecoins issued outside the EU to be treated as equivalent to their European-registered counterparts.

The move would clear a key regulatory hurdle that has so far limited the reach of dollar-backed stablecoins in Europe’s financial markets.

The shift comes despite repeated warnings from the European Central Bank, which has cautioned that unrestricted access to foreign stablecoins could undermine financial stability.

ECB President Christine Lagarde previously urged policymakers to tighten restrictions on stablecoin issuers, citing the risk of capital flight and reduced monetary sovereignty.

Under the EU’s Markets in Crypto-Assets (MiCA) regulation, stablecoin issuers are currently required to maintain most of their reserves in EU-based banks and ensure euro-denominated redemption rights.

The proposed changes would allow global issuers to bypass those limitations for branded versions of their tokens already operating under EU supervision.

The U.S. Senate’s recent passage of the GENIUS Act, which establishes a national framework for stablecoin oversight, has increased pressure on other jurisdictions to keep pace.

The Financial Times cited several unnamed officials familiar with the matter, who indicated that the Commission’s guidance aims to avoid a scenario in which the EU becomes a “flyover zone” for digital assets, left behind by faster-moving markets in the U.S. and Asia.

The ECB has not publicly commented on the upcoming guidance, but sources told the FT that internal opposition remains strong. EU officials are reportedly working on a compromise that would give national regulators more discretion in assessing the risks associated with foreign stablecoins.

If enacted, the new approach could mark a turning point for the role of U.S. dollar-backed stablecoins in Europe, reinforcing the dollar’s dominance in digital asset markets while signaling the EU’s desire to remain a competitive hub for crypto innovation.

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As America’s financial engine sputters, Mike Novogratz, founder of Galaxy Digital, argues the weakening dollar, ballooning deficits, and deteriorating U.S. economy are good news – for Bitcoin and crypto, at any rate.

At the same time, the European Central Bank (ECB) is sounding its own alarm in its latest Financial Stability Review.

The ECB points to rising risks of a debt crisis, potential banking sector shocks, and an increasingly fragile financial system.

Add in the chaos brewing in Japan’s bond market, and you’ve got a recipe for global financial collapse.

While politicians fumble, markets wobble, and central banks cross their fingers, one option remains rock solid: Bitcoin.

If holding Bitcoin is now a must, as some experts now claim, then the next logical step is figuring out what crypto to buy next.

As the System Flounders, Bitcoin Looks Like a Lifeboat

The ECB’s report doesn’t sugarcoat it. Governments across Europe are sitting on massive debt piles, and unless growth magically picks up, concerns about sovereign debt could resurface fast.

That means more bailouts, more liquidity injections, and likely, more long-term damage to the currency.

Dr. Jan, a longtime critic of centralized monetary policy, pointed out that this isn’t a minor bump in the road – it’s a real systemic risk.

Global risks are rising.

In its latest Financial Stability Review, the ECB warns of growing risks to sovereign debt sustainability and the broader stability of the financial sector:

“Unless potential growth can be raised, concerns about sovereign debt sustainability could… pic.twitter.com/A9jdOgYwmp

— Dr. Jan Wüstenfeld (@JanWues) May 21, 2025 

The ECB also points to households and companies being under increasing pressure, and warns that any spillover into the banking sector could cause disorderly market conditions.

Meanwhile, Japan’s bond market is flashing red, with yields spiking to historic highs. If investors begin questioning whether sovereign bonds are even safe anymore, it’s game over for the traditional playbook.

In this climate, holding Bitcoin is no longer some fringe hedge – it’s a rational, defensive move.

It’s not about betting on the collapse of the system. It’s simply preparing for what many experts now see as an inevitable shift in how value is stored and protected.

Crypto is becoming the safety net that fiat currencies can no longer promise. With that in mind, let’s explore three new crypto projects worth a second look.

1. Solaxy ($SOLX) – Last Chance to Buy the Token Supercharging Solana

Solaxy ($SOLX) isn’t just the first-ever Solana Layer-2 – it’s the fix the Solana ecosystem has been begging for.

Solana is famous for its blazing speed and low fees, but it’s been plagued by congestion, scalability issues, and failed transactions.

Solaxy neutralizes these issues while enhancing what already works on Solana. It boosts speed, improves throughput, and ensures reliability. It’s like giving a sports car a turbo engine and four-wheel drive.

$SOLX is the native token of this next-gen blockchain, and it’s multichain. Being built on both Ethereum and Solana, Solaxy bridges the world’s most liquid DeFi ecosystem with the fast-paced meme coin battlefield.

In a time when faith in traditional systems is slipping, Solaxy stands out as a fresh new DeFi solution with real utility and scale.

Priced at just $0.001732 and with the presale raise crossing $39M, Solaxy’s momentum is going strong, but time is running out. There are only 25 days left to buy before the presale ends.

2. BTC Bull Token ($BTCBULL) – The Only Meme Coin That Drops You Real Bitcoin

BTC Bull Token ($BTCBULL) isn’t your average meme coin. It’s a Bitcoin-propelled rocket engine built to reward its holders every time Bitcoin breaks a new price milestone.

When $BTC hits $150K, $200K, and beyond, $BTCBULL holders receive real Bitcoin – airdropped directly into their wallets. No mining. No need to buy a full Bitcoin. Just buy and hold $BTCBULL in Best Wallet and get rewarded.

BTC Bull Token also burns its own supply every time Bitcoin crosses increments like $125K, $175K, and $225K, tightening circulation and increasing scarcity with each leg of the bull run.

It’s a token built to mirror Bitcoin’s rise – while multiplying the upside for those who get in early.

At just $0.002525, and with over $6.1M raised, the presale is already attracting serious momentum. The token is stakable too, with an APY of 67%, offering passive income while waiting for those juicy Bitcoin milestone airdrops.

BTC Bull Token lets anyone plug into that upside, even with just a few bucks. But with only days left in the current crypto presale round, time’s ticking. The next price jump is around the corner.

3. Dogwifhat ($WIF) – Solana’s Viral Meme Coin Turning Chaos Into Comedy and Cash

When people lose faith in institutions, they don’t just run to gold – they run to memes.

Dogwifhat ($WIF), Solana’s most viral meme coin, has become an internet-powered protest coin, riding a cultural wave that mocks the traditional financial system for collapsing under its own weight.

$WIF isn’t just another dog token. It’s a symbol.

Like Dogecoin before it, $WIF blends absurdist humor with community power, offering a decentralized outlet for people fed up with inflation, bailouts, and broken banks. It’s pure memetic momentum – funny, defiant, and fast.

Built on Solana, $WIF benefits from near-instant transactions and low fees, making it ideal for the retail masses driving its explosive rise.

And it’s not slowing down. Priced at $1.15 and pumping +165% this month, $WIF is on a tear while the rest of the world worries about sovereign debt.

In a world where trust in fiat is waning, $WIF offers something no central bank can print: social currency. If Bitcoin is digital gold, $WIF is digital graffiti – loud, fearless, and right on the money.

When Systems Shake, Crypto Shines Bright

With Mike Novogratz warning about America’s financial cracks and the ECB flagging similar systemic risks in Europe, the old system is clearly cracking.

In that context, Bitcoin is no longer a luxury – it’s a necessity.

But beyond $BTC, projects like $SOLX, $BTCBULL, and $WIF offer unique ways to pivot to the new. Whether you’re seeking safety, passive income, or pure meme-powered rebellion, now’s the time to act.

Remember to always do your own research (DYOR) before investing in crypto. This article is for informational purposes only and not financial advice.

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

The European Central Bank (ECB) raised an alarm over potential fallout from aggressive US support for the crypto industry, warning that a surge in dollar-backed stablecoins could destabilize Europe’s financial system.

According to a policy paper seen by Politico, the ECB has asked for a revision of the Markets in Crypto-Assets Regulation (MiCA) regulatory framework for cryptocurrencies just months after it came into effect.

The concern is that US reforms backed by President Donald Trump could flood European markets with dollar-denominated stablecoins.

The ECB fears this could trigger a flight of European capital into US assets, undermining EU financial sovereignty and exposing banks to liquidity risks.

ECB and European Commission Clash Over MiCA Rules

While the ECB calls for tighter controls, the European Commission dismissed the warnings as exaggerated, per the report.

The report, citing two diplomats and one EU official, said that the existing MiCA framework is robust enough to manage stablecoin risks despite potential US policies like the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS), two bills aimed at expanding America’s crypto footprint.

“The Commission was quite clear that they had different views on this topic,” and “not very many (countries) supported the idea that we should now jump the gun and start making quick changes in (the rules) based on this alone,” one of the diplomats reportedly told Politico.

The stablecoin sector now commands a valuation of $234 billion, according to data from CoinMarketCap.

The ECB warned that European issuers could face redemption pressures from EU and foreign holders without stricter limits, potentially sparking a financial “run” and harming exposed institutions.

“The worry is warranted,” Mikko Ohtamaa, co-founder and CEO at Trading Strategy, said in a post on X. “However, the EU had the first mover advantage with the regulation and they screwed it up.”

Ohtamaa said no EU stablecoin is globally competitive due to MiCA’s restrictive rules, which are influenced by bank and legacy finance lobbying.

Related: US regulator,s FDIC and CFTC, ease crypto restrictions for banks, derivatives

Tether Remains a Major Critic of MiCA

​Tether, the issuer of the world’s largest stablecoin, USDT, has long been a critic of the EU’s MiCA regulation.

Last year, CEO Paolo Ardoino argued that MiCA’s requirements, particularly the mandate for stablecoin issuers to hold at least 60% of reserves in EU bank accounts, could introduce systemic risks to both stablecoins and the broader banking system.

Due to noncompliance with MiCA, Tether’s USDt (USDT) has faced delistings from major European exchanges, including Coinbase, Crypto.com and Kraken.

Magazine: Altcoin season to hit in Q2? Mantra’s plan to win trust: Hodler’s Digest

]]> https://earlybirdsinvest.com/ecb-flags-risk-of-financial-contagion-from-us-crypto-push/feed/ 0 32190 https://earlybirdsinvest.com/us-heading-for-future-upheaval-due-to-its-embrace-of-crypto-says-ecb-governing-council-member-report/ https://earlybirdsinvest.com/us-heading-for-future-upheaval-due-to-its-embrace-of-crypto-says-ecb-governing-council-member-report/#respond Tue, 18 Mar 2025 13:05:31 +0000 https://earlybirdsinvest.com/us-heading-for-future-upheaval-due-to-its-embrace-of-crypto-says-ecb-governing-council-member-report/

The Trump Administration’s embrace of crypto is reportedly putting international financial stability at risk, says Francois Villeroy de Galhau, a member of the European Central Bank’s (ECB) Governing Council.

Villeroy de Galhau tells the French news outlet La Tribune Dimanche that the US “risks sinning through negligence,” according to Bloomberg.

“Financial crises often originate in the United States and spread to the rest of the world. By encouraging crypto-assets and non-bank finance, the American administration is sowing the seeds of future upheavals.”

The ECB official, who serves as governor of France’s central bank, also argues that Europe isn’t at risk of a banking crisis because the European Union (EU) is doing a superior job of supervising crypto.

The ECB has also been pushing for a digital euro to counter US President Donald Trump’s embrace of dollar-pegged private sector stablecoins.

ECB board member Piero Cipollone said at a conference in January that Trump’s new executive order on crypto could drive people away from banks.

“I guess the key word here (in Trump’s executive order) is worldwide. This solution, you all know, further disintermediates banks as they lose fees, they lose clients… That’s why we need a digital euro.”

However, vocal opposition to the ECB’s digital euro project swelled after the institution’s payment system crashed last month.

TARGET2 (T2), the ECB’s real-time gross settlement system, went down in late February, which prevented payments from being processed for several hours.

German MP Markus Ferber, a member of the European People’s Party, says the outage was “a blow to the ECB’s credibility.”

“People will ask legitimate questions how the ECB will be able to run a digital euro when they cannot even keep their day-to-day operations running smoothly.”

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A senior European Central Bank (ECB) official said that President Donald Trump’s aggressive push for crypto adoption could fuel financial instability and urged EU policymakers to strengthen their regulatory stance to mitigate potential fallout.

François Villeroy de Galhau, Governor of the Bank of France and a member of the ECB’s Governing Council, said in an interview with French news outlet La Tribune Dimanche that the US “risks sinning through negligence” by prioritizing crypto-friendly policies without adequate oversight.

He argued that by “encouraging crypto assets and non-bank finance,” the US is “sowing the seeds of future upheavals,” adding that financial crises have historically “often originated in the United States and spread to the rest of the world.”

Villeroy de Galhau’s comments reflect a growing concern among European regulators over Trump’s pivot toward digital assets. Since returning to office, the Trump administration has taken a series of steps to integrate crypto into the financial system.

These include signing an executive order establishing a Strategic Bitcoin Reserve, forming a Presidential Working Group on digital assets, and pushing for legislative reforms that would roll back Biden-era restrictions on crypto banking.

ECB’s growing criticism

The ECB has repeatedly cautioned against the risks of a pro-crypto economic policy, warning that a lack of regulatory safeguards could trigger market turbulence. In a report last year, the central bank criticized the speculative nature of crypto, labeling them as “highly volatile and unsuitable as a reliable form of money.”

ECB President Christine Lagarde has also been vocal about the dangers of large-scale crypto adoption, previously describing Bitcoin as “a speculative asset with no intrinsic value” and cautioning that unregulated digital assets could undermine financial stability.

Earlier this year, the ECB announced a two-phase initiative to develop blockchain-based settlements, signaling its preference for a controlled, state-backed approach to digital assets. The plan includes establishing central bank digital currency (CBDC) called the digital euro, which the bank argues would provide a safer alternative to privately issued cryptocurrencies.

Despite Trump’s pro-crypto stance, financial markets have responded with volatility. Bitcoin recently tumbled below $80,000 — down over 25% from its January high of $109,000 — amid investor uncertainty over US economic policies. Equities have also taken a hit, with the S&P 500 falling more than 10% from its February peak after Trump threatened to impose 200% tariffs on European spirits.

Europe bracing for economic impact

Villeroy de Galhau urged European leaders to “strengthen their negotiating position” against the U.S., arguing that Trump’s economic policies are based on a “false vision” of the global economy as a zero-sum game. He warned that Europe should not be complacent in the face of Washington’s shifting financial landscape.

As the ECB moves forward with its digital payments infrastructure, European regulators appear to be positioning themselves as a counterbalance to the US’ deregulated approach. The divide highlights a fundamental clash in financial philosophy — one that could shape the future of global markets.

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Christine Lagarde, President of the European Central Bank, said that the ECB is aggressively pursuing the idea of a digital euro and expects to finish the testing phase by October 2025. If it goes through, it will be the EU’s first Central Bank Digital Currency (CBDC).

Unlike cryptocurrencies, CBDCs aren’t decentralized or run on blockchain. They’re pegged to a country’s national currency, so the value of 1 digital euro is equal to the value of one physical euro.

CBDCs have been a hot topic of debate for a long time now. Proponents believe they’re absolutely essential to move to a cashless economy. They also argue that they’re a lifeline for unbanked populations, especially in regions where traditional banking infrastructure is limited.

Detractors feel they centralize financial power, contradicting the decentralized ethos of cryptocurrencies.

So, the real question is, why is Europe pushing for a CBDC?

The Hidden CBDC Motives

Not to stir up conspiracy here, but it’s a well-known fact that CBDCs give the government more control over people’s finances. They’re often viewed as a threat to the very freedom that’s been a central tenet of cryptocurrencies.

Even US President Trump has taken a firm stance against CBDCs, calling them a “dangerous threat to freedom,” and citing concerns about potential government overreach and the risk of financial surveillance. In January 2025, he signed an executive order banning CBDCs in the US.

Digital Euro May Result in a Crypto Bull Run

Despite all this, the EU is pushing forward with its plans. Whatever the motives behind the creation of the digital euro may be, the crypto market is sure to make its feelings known. Enthusiastic investors might go on to buy crypto aggressively to reinforce their support for the original mechanism.

Moreover, with the announcement of a US Bitcoin reserve and several pro-crypto regulatory changes in the pipeline, the time seems ripe for the next crypto boom. And this digital euro announcement might just be the spark needed to set off the explosion.

If that happens, everyone is going to need a good crypto wallet, which may just be the investment opportunity of the day. Enter Best Wallet Token ($BEST).

What Is $BEST?

$BEST is the native token of the Best Wallet App – a secure, multi-chain, non-custodial crypto wallet that looks set to claim 40% of the crypto wallet market by 2026.

Security-wise, too, you can’t go wrong with Best Wallet, which uses Fireblock’s MPC-CMP wallet technology along with multi-factor authentication and biometrics for airtight privacy and security.

By holding $BEST tokens and using the Best Wallet App, you benefit from no gas fees plus loads of airdrop rewards. You earn free $BEST tokens by frequently using Best Wallet, completing daily quests, and engaging with Best Wallet socials.

Holding the $BEST token comes with a lot of other insider perks. For instance, it’ll unlock the ‘upcoming tokens’ section on the app. Here, you can find all trending meme coin presales well before they go on sale to the general public.

This gives you the opportunity to become an early investor in high-potential cryptos. Moreover, each of these coins is vetted by the Best Wallet team, meaning you can rest assured that they’re not scams or random hoax websites.

Aside from no gas fees on the platform, holders can also benefit from a high staking reward, currently at 145% p.a.

Why Should You Invest in $BEST?

The total crypto wallet market is expected to surge to a massive $32B by 2030. As one of the fastest-growing crypto wallets right now, with a 50% month-on-month user base increase, Best Wallet is positioned to profit from this. If it goes on to capture its projected 40% slice of the market, and you’re along for the ride, your wallet could fill up fast.

In addition to benefitting from the app’s growth, $BEST token holders will also enjoy regular market updates and access to real-time charts. This way, they’ll stay abreast with what’s happening in the crypto space.

Developers also have plans to introduce the Best Card – a crypto debit card that lets you spend your cryptocurrency anywhere.

At the pace at which crypto is breaking into the mainstream, it’s easy to see why $BEST could be the next crypto to explode.

The $BEST presale has been performing phenomenally well, having raised nearly $11M so far.

Currently available at a price of just $0.0243, the next $BEST price increase will take place in less than two days. So, this might be the last chance to grab $BEST before it becomes a trending crypto.

However, since crypto investments are subject to market risks, it’s important to do your own research before jumping in. This article isn’t financial advice, and it’s always best to consult a financial advisor before investing in any cryptocurrencies.