European Union Encourages Digital Euro with Offline Privacy Options
The European Union’s Council now agrees with the ECB plans for the digital euro. There will be a simultaneous launch of the online and offline versions. An EU document emphasizes that the European Parliament will determine the final design of the legislation after reviewing the European Commission proposal.
The president of the ECB, Christine Lagarde, said the bank will work together with the Council and Parliament to assess the framework and ensure it is fit for purpose both financially and from a regulatory perspective.
Offline Digital Euro: Cash-Like, Private but Not Completely Anonymous
The offline digital euro aims to allow cash-style use while keeping transaction data secure. Unlike cash, the offline digital euro is anonymous, preventing third-party tracking. All data would remain on users’ devices.
Direct in-person exchanges would be possible via transactions between authorized devices. Specialists warn, however, that advanced users could bypass these restrictions, and countermeasures are limited, according to the European Data Protection Board.
The board observed that:
“You cannot rely on the physical proximity of cash in a digital form.”
Digital euro tokens and private keys would be stored in certified mobile devices or smart cards. Privacy will be preserved using ‘secure elements’, ensuring security is not compromised.
Also Read : US National Banks Can Now Conduct Crypto Trades as Riskless Principals, OCC Confirms
As Markets Stay Turbulent, Crypto Treasury Firms Recalibrate
Amid market volatility, crypto treasury firms are restructuring balance sheets to maintain liquidity.
ETHZilla, previously known as 180 Life Sciences Corp, announced the sale of 24,291 ETH for $74.5 million to repay convertible notes. The firm still holds about 69,800 ETH.
ETHZilla has shifted focus to an Ether investment strategy and completed two acquisitions in December: tech firm Karus and Zippy.
Similar moves include:
- FG Nexus: Sold 10,922 ETH for share buybacks.
- Sequans: Reduced convertible debt by 50% via Bitcoin sales, decreasing holdings from 3,234 BTC to 2,264 BTC.
- Strategy: Raised $747.8 million through the sale of 4.535 million Class A shares to boost liquidity.
This trend illustrates that digital asset treasuries increasingly balance debt obligations and liquidity needs with volatile crypto markets.
Preparing for the Future of Digital Euros and Crypto Treasuries
The offline digital euro highlights central bank digital currency alignment with privacy, while crypto firms demonstrate the realities of price volatility on corporate balance sheets.
Both initiatives illustrate the growing intersection of regulation, financial stability, and digital assets. The era of privacy, innovation, and prudent treasury management is being defined by Europe and beyond.
