EMEA Daily: Digital Euro Could Arrive Within Four Years

In today’s top Europe, Middle East and Africa (EMEA) news, a European Central Bank official says the digital euro could be in circulation in four years.

Also, new European consumer credit rules could arrive this summer, and Germany’s financial watchdog asks Deutsch Bank about its WhatsApp messaging practices.

ECB’s Panetta: Digital Euro Could Launch Within Four Years

A digital euro could become a reality within the next four years, Fabio Panetta of the European Central Bank’s (ECB) executive board said Monday (May 16), calling it a needed step toward economic growth and strength.

“As we face the most serious geopolitical crisis since the Cold War, old certainties are increasingly being challenged,” Panetta said, referring to Russia’s invasion of Ukraine.

“In the financial realm, old certainties are also beginning to falter,” he continued. “Digital technologies, changing payment habits and the race for payments supremacy are testing the complementarity of public and private money, which has long formed a cornerstone of our monetary system.”

BaFin Seeks Deutsche Bank Clarification on Business Communications via WhatsApp

German financial watchdog BaFin wants more information from Deutsche Bank on how the bank’s workers use private messages on WhatsApp for business purposes.

Senior Deutsche Bank executives, including management board members, have used WhatsApp, other messaging tools and private email accounts to handle business, sources close to the matter told Bloomberg.

BaFin wants to make sure Deutsche Bank officials comply with banking rules, the sources said. The request comes as Deutsche Bank Chief Executive Officer Christian Sewing has spent billions in an effort to improve bank’s controls and its relations with supervisors.

New EU Consumer Credit Rules May Be Approved By Summer

A committee of the European Parliament is set to vote next month on the proposed Consumer Credit Directive (CCD) with the goal of final approval in plenary session before breaking for the summer. Lawmakers were scheduled to meet Tuesday (May 17) to discuss proposed amendments to the text.

In the wake of a rise in digital lenders and increased online distribution of consumer credit, the European Commission proposed amending CCD in June, since the existing law, which was written in 2008, does not include include many popular new lending initiatives like buy now, pay later (BNPL), payday loans or short-term overdraft facilities.

EU Regulators Lash out at Stablecoins While Boosting CBDCs

Following a volatile week for stablecoins and cryptocurrencies, this week began with European Union regulators calling once more to look into this space and to promote alternatives to private digital money, in this case, a digital euro.

Two top central bank officials have lambasted crypto assets and the disruption they could bring to the global financial system if left unregulated.

First, Bank of France Governor Francois Villeroy de Galhau told a conference in Paris that more regulation is needed, and crypto assets should be interoperable in a consistent and appropriate manner across jurisdictions.

Meanwhile, at a speech in Dublin, Fabio Panetta, member of the executive board of the European Central Bank and the person in charge of developing a central bank digital currency for Europe, warned that stablecoins are vulnerable to runs.

Digital Grocery Delivery Startup Buymie Picks up $7.3M in Fresh Funding

Irish online grocery delivery startup Buymie has secured 7 million euros ($7.3 million) to continue building its digital ordering and delivery technology.

The company said it will use the capital to expand in Ireland and the U.K., with about 200 other cities potentially on tap.

Based in Dublin and co-founded in 2016 by CEO Devan Hughes, Buymie specializes in fast online grocery delivery. Last year, the company said it saved customers an estimated 100,000 car trips for everyday food items.