Former Google product lead and Brava Finance founder Graham Cooke says the world is entering a new financial era,. And according to him, the market has already chosen its winner. On Nov. 30, Cooke wrote in a newsletter, “The financial world is splitting in two.” His analysis lays out why Bitcoin, stablecoins and blockchain payment rails are accelerating faster than government-led digital currency projects and why Bitcoin’s valuation behaves unlike any traditional asset. Graham Cooke is a well-known fin ...

Core Points - The European Central Bank (ECB) has been instructed by the European Council to expedite the development of the digital euro, a central bank digital currency (CBDC) [1][3] - If the European Parliament approves the necessary regulations in 2026, a pilot for the digital euro will occur in 2027, with a full rollout planned for 2029 [1][4] - Christine Lagarde, ECB president, emphasized the importance of the digital euro in digitizing cash and reducing reliance on physical currency [2][3] Development Timeline - The ECB is entering the "next and final phase" of the digital euro's development [2] - The European Parliament's approval in 2026 is crucial for initiating a pilot exercise and initial transactions by mid-2027 [4] - The formal release of the digital euro across Europe is targeted for 2029 [1][4] Financial Aspects - The total estimated development cost for the digital euro is €1.3 billion (approximately $1.5 billion) until its first issuance in 2029 [5] - Annual operating costs post-launch are projected to be €320 million (around $369 million) [5] Technical Characteristics - The digital euro will not utilize public blockchains for transactions but will incorporate key design principles from digital ledger technology [3] - Unlike stablecoins, CBDCs like the digital euro are issued by central banks and are distinct in their operational framework [3]

Core Viewpoint - A senior EU official advocates for the creation of euro-backed stablecoins to reduce reliance on U.S. dollar-pegged tokens in the global crypto market [1][2][3] Group 1: Need for Euro-Backed Stablecoins - The EU should not depend on U.S. dollar-denominated stablecoins, which currently dominate the market [2] - Stablecoins are seen as essential in the evolving financial landscape, and Europe must facilitate the issuance of euro-denominated stablecoins by domestic issuers [2][3] Group 2: Digital Euro Initiative - The digital euro initiative is gaining momentum, with the ECB potentially rolling it out by 2029 [5] - Recent discussions among euro area finance chiefs have been described as a "major breakthrough" in reaching consensus on customer holding limits to protect bank deposits [5][6] - The digital euro aims to reduce reliance on private payment companies and curb the influence of dollar-denominated stablecoins in Europe [6] Group 3: Support from EU Officials - Paschal Donohoe, president of the Eurogroup, supports financial innovation and highlights the potential benefits of the digital euro for regional commerce [4] - The European Parliament is expected to have a position on the legislative framework for the digital euro by early May next year [6] Group 4: Challenges Ahead - Several unresolved technical and policy questions remain, including privacy safeguards and the operational framework of the currency [7]

Core Insights - The euro is considered one of the EU's most significant achievements, having survived a sovereign debt crisis and undergoing extensive banking and monetary reforms over three decades [1][4] - There is a prevailing sense of policy inertia within the eurozone, with national divisions and competing priorities hindering progress on reforms [3][4] - European leaders are recognizing the need to bolster the euro's global status to protect their export-driven economies amid rising protectionism [8][9] Group 1: Euro's Global Position - The euro accounts for approximately 20% of global central bank reserves and trade invoicing, making it the second-most favored currency after the dollar [7] - The euro has appreciated around 13% against the dollar this year, reaching a four-year high, with expectations for further gains as the U.S. Federal Reserve cuts its benchmark rate [8] - There is a consensus that increasing the euro's presence in global trade and reserves could insulate the eurozone from exchange rate fluctuations and economic sanctions [9] Group 2: Challenges to Euro Reforms - Proposals for jointly issued euro-denominated debt to fund defense initiatives have faced resistance from major economies like Germany and France [2][16] - The lack of a deep and liquid capital market in the eurozone is a significant barrier, with the outstanding euro area bonds totaling around $13 trillion compared to the $30 trillion U.S. Treasury market [10][11] - Fragmentation of capital and banking markets across member states complicates efforts to create a unified capital markets union, which has been a long-standing goal [20][21] Group 3: Digital Euro and Future Prospects - The proposal for a digital euro has been stalled for over two years, with concerns about its potential impact on bank deposits and unclear objectives [25][26] - The earliest timeline for the digital euro's approval is mid-2026, with additional time required for technology development [27] - Despite resistance to necessary reforms, there is a belief that the euro can strengthen its position as the global number two currency, although it is unlikely to rival the dollar's dominance soon [29][30]

Core Insights - The European Union is initiating a year-end effort to enhance pension savings and tighten market oversight, potentially granting new authority to its Paris watchdog over crypto firms [1][2] Group 1: Pension and Market Reforms - The proposed package will include pension auto-enrolment, tax incentives for savings, and measures to reduce cross-border trading barriers [2] - The initiative, referred to as the EU's Savings and Investments Union, aims to mobilize household wealth and improve Europe's financial autonomy by integrating fragmented markets and increasing retail participation [3][6] Group 2: Supervision and Regulatory Framework - There is a consideration for centralized supervision of market infrastructures, including central counterparties and trading venues, particularly for rapidly evolving sectors like Crypto Asset Service Providers [3] - Any transfer of supervisory powers to the European Securities and Markets Authority (ESMA) is intended to create a collaborative oversight framework that manages cross-border risks and ensures consistent enforcement across the EU [4] Group 3: Digital Euro and Competitiveness - The discussions on pensions and market reforms are occurring alongside efforts to design a digital euro, with considerations on whether to utilize public blockchains like Ethereum or Solana [5] - The competitiveness of the euro in global finance is under scrutiny, especially in light of the U.S. advancing its first stablecoin law [5] - The development of deeper capital markets and stronger pension systems is viewed as essential for channeling long-term savings into the economy [6]

Core Insights - Diebold Nixdorf is participating as one of 70 contributors in the European Central Bank's innovation platform to explore digital euro payment functionalities and use cases [1][2] - The digital euro aims to be a universally accepted form of digital cash in the European Union, complementing existing payment methods [2] - Diebold Nixdorf's Vynamic® Transaction Middleware will integrate with digital euro interfaces, allowing banks to support new services efficiently [3][4] Company Involvement - Diebold Nixdorf is collaborating with the ECB to enhance the digital euro ecosystem, benefiting both banks and customers [2][4] - The company aims to assist banking customers in offering the digital euro as a new payment method in the future [4] - Diebold Nixdorf has a global presence, serving top financial institutions and retailers, and employs approximately 21,000 people worldwide [5]

Summary of the European Central Bank Update / Briefing July 24, 2025 Industry Overview - The briefing pertains to the European Central Bank (ECB) and its monetary policy decisions in the context of the Eurozone economy. Key Points and Arguments 1. **Interest Rates Unchanged**: The ECB decided to keep the three key interest rates unchanged, maintaining a focus on stabilizing inflation at the 2% medium-term target [2][16][75]. 2. **Current Inflation Status**: Inflation is currently at 2%, aligning with the ECB's target, with domestic pressures easing as wage growth slows [2][7][8]. 3. **Economic Resilience**: The Eurozone economy has shown resilience despite global challenges, supported by strong private consumption and investment, although firms are hesitant to invest due to geopolitical uncertainties and trade disputes [3][5][6][31]. 4. **Unemployment Rate**: The unemployment rate stood at 6.3% in May, close to its lowest since the euro's introduction, indicating a robust labor market [6]. 5. **Inflation Dynamics**: Annual inflation was reported at 2% in June, with energy prices rising but still lower than the previous year. Food price inflation eased to 3.1% [7][8]. 6. **Wage Growth Trends**: Year-on-year growth in compensation per employee slowed to 3.8% in Q1, down from 4.1% in the previous quarter, indicating moderating labor costs [8][30]. 7. **Risks to Economic Growth**: Risks remain tilted to the downside, including global trade tensions, geopolitical conflicts, and potential financial market sentiment deterioration [11][12][39]. 8. **Monetary Policy Approach**: The ECB will adopt a data-dependent approach, assessing inflation outlooks and risks on a meeting-by-meeting basis without pre-committing to a specific rate path [4][16][75]. 9. **Credit Conditions**: Easier financing conditions are supporting domestic demand, with the average interest rate on new loans to firms declining to 3.7% in May [14][15]. 10. **Future Projections**: The ECB anticipates that if trade and geopolitical tensions are resolved swiftly, it could improve sentiment and spur economic activity [11][12][55]. Additional Important Content 1. **Digital Euro Development**: The ECB is focused on developing a digital euro to respond to evolving payment preferences, emphasizing the importance of maintaining currency issuance protection [51][66]. 2. **Market Reactions**: The ECB acknowledges market expectations for potential rate cuts but emphasizes that decisions will be based on data and economic developments [72][75]. 3. **Liquidity in the System**: Despite a reduction in liquidity due to various factors, the ECB maintains that there is still ample liquidity in the system, exceeding €2 trillion [60][61]. 4. **Trade Negotiations Impact**: The ECB is closely monitoring ongoing trade negotiations, indicating that resolution of uncertainties could significantly influence economic behavior and decision-making [20][24][49][55]. This summary encapsulates the key insights from the ECB's briefing, highlighting the current economic landscape, monetary policy stance, and future outlook for the Eurozone.