The European Central Bank is urging faster action on the digital euro as legislative delays risk hindering progress amid growing global competition.

The digital euro project is facing delays in the European Union, with the European Central Bank urging faster action to prevent Europe from falling behind global competitors.

Evelien Witlox, the ECB’s project manager for the digital euro, told Euronews in an interview that Europe should speed up with the development to avoid falling behind, as global competitors like the U.K. and China are also exploring central bank digital currencies.

Thus far, there is no pan-European digital payment solution as 13 of the 20 countries in the eurozone lack a national card scheme, relying instead on international players like Visa and Mastercard, the report notes. Witlox noted that the European market remains fragmented, with “the ones that come closest to covering the whole of Europe are non-European.”

To address this, the ECB launched a CBDC exploration project in October 2021. However, before the digital euro can move forward, the European Parliament and Council must finalize the legal framework—a process that has yet to be completed nearly 17 months after the European Commission’s proposal. This delay has raised concerns within the ECB, Witlox noted.

Although discussions on the digital euro have made progress, Witlox reiterated the need for urgency to keep “sufficient pace in this process so that we can ensure that the digital euro will be there when we really need it.” Although there is no set timeline for the digital euro’s launch, Witlox remains optimistic, stressing that Europe is still “at the forefront of the development [of a CBDC].”

A recent research report by Coincub and Blockpit highlights how varying tax policies, from zero taxes in the UAE to high rates in the U.S., shape crypto investment strategies.

The crypto taxation landscape varies widely across the globe, as revealed by a research report from Blockpit and Coincub.

Data reveals that the UAE remains an attractive destination for crypto investors, with no personal income or capital gains tax on cryptocurrency gains for individuals. Similarly, Switzerland positions itself as a tax haven, offering zero personal income and capital gains tax on crypto gains.

In Europe, the situation is more mixed. While some nations provide favorable tax conditions for long-term holdings, others maintain elevated tax rates. For example, Denmark has one of the highest personal crypto tax rates globally, with up to 53% of long-term and short-term capital gains from crypto being taxed by the local watchdog.

The report notes that, on average, many European countries impose relatively high taxes on crypto gains, but the old continent “has the most tax breaks for long-term hodling your Bitcoin.”

Meanwhile, the United States has the highest total gains and average tax rates of 17.5% (long-term) and
23.5% (short-term), what could potentially bring in tax revenues approximately $1.87 billion, the analysts estimate. They warn that high taxation could “discourage investment,” pushing crypto activities underground, or force investors to relocate to more tax-friendly jurisdictions.

“Nations like Vietnam, Turkey, and Argentina might prioritize attracting crypto investment, fostering technological innovation, and providing alternatives to unstable local currencies over immediate tax collection.”

Blockpit

Analysts indicate that the global approach to crypto taxation is set to undergo significant changes starting in 2025, driven by international initiatives such as the Crypto-Asset Reporting Framework and the Tax Administration for the Reporting of Crypto-Asset Activities.

Developed by the Organization for Economic Co-operation and Development, CARF aims to enhance tax transparency and combat tax evasion by creating a global framework for reporting crypto transactions. In parallel, TARKA is designed to facilitate cooperation among tax authorities in the 48 participating countries, per the report.

Boerse Stuttgart Digital has partnered with Amazon Web Services to enhance its crypto infrastructure, enabling European financial institutions to scale their offerings.

Boerse Stuttgart Digital, a German crypto infrastructure hub powered by Boerse Stuttgart Group, has entered into a partnership with Amazon Web Services to enhance its offerings for European financial institutions as the demand for crypto services continues to rise.

In a Monday press release, Oct. 14, the Stuttgart-headquartered company said the collaboration aims to improve the scalability of its solutions, designed for traditional banks, brokers, and asset managers. The company says the collaboration was born in response to a new trend as retail customers and corporates across Europe are “increasingly seeking reliable avenues to venture into the crypto market.”

“Traditional financial institutions are facing a pivotal choice: to miss out on this structural trend or partner with established infrastructure providers which stand for trust, security, and reliability.”

Boerse Stuttgart Digital

Addressing the partnership, Boerse Stuttgart Group’s CEO Matthias Voelkel said that institutional investors are “eager to offer their clients access to cryptocurrencies and digital assets without compromising on trust, security and reliability.”

The development comes as Boerse Stuttgart Digital expands its client roster, particularly with DZ Bank, a key player in the German cooperative banking sector and one of the largest banking groups in Europe. In mid-September, Boerse Stuttgart Digital said that DZ Bank would empower 700 cooperative banks to offer their retail customers the ability to trade cryptocurrencies and store them in licensed fiduciary custody.