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Digital euro law: Surveillance should be “impossible by design”, says EU Parliament report
May 26, 2023
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A recent European Parliament report analyzing the digital euro’s legal basis has argued against the European Central Bank’s (ECB) suggested tight holding limits, remuneration schemes, and limited privacy features. The first rollout date, currently set for 2027, might be too ambitious to implement all the desirable legislation

A topical point raised in the paper is the role of banks and payment providers. Legal tender legislation might require merchants and payment firms to accept CBDC but won’t force banks to act as intermediaries as the ECB is planning. However, the paper doesn’t delve into the challenge of refusing a central bank who is also your regulator.

Legally risky digital euro features

Two key design decisions for the digital euro are holding limits that could be around €3,000 and the possibility of paying interest. Holding limits should prevent mass migration to CBDC from bank deposits. But it moves the digital euro away from the concept of it being digital cash because physical cash has no such restrictions. As we’ll see, classing it as digital cash has some legal ramifications. 

As for paying interest, the problem is that it creates unnecessary complexity and risks interfering with commercial banks’ deposit-taking business, defeating the purpose of the holding limits. A tiered structure – paying different interest rates depending on the amount – could be a preferred alternative. 

However, imposing negative interest rates could be legally problematic as it could infringe on the European Convention on Human Rights, which states, “Every natural or legal person is entitled to the peaceful enjoyment of his possessions.”. 

The author, Seraina Grünewald, is emphatic on the interest point: “The idea of remunerating the digital euro was intellectually appealing in the early discussions on CBDC designs. As the digital euro is moving towards its realisation, the idea should be retired for good – not only because the added value of remuneration compared or in addition to holding limits is at best unclear, but also because it creates significant legal risk.”

Lastly, the author delves into the question of privacy, a matter that will have a “determining influence on the demand and ultimate success.” From a legal perspective, a digital euro would be more cash-like the closer it is to the anonymity of physical cash. 

“It is wise and legally desirable to ensure that systematic surveillance of the payment behavior of individual citizens and firms by the ECB as a public institution is rendered impossible by design,” wrote Grünewald.

Two legal bases

An important part of the author’s analysis rests on a key legal distinction. The digital euro has been presented both as a “digital equivalent of euro banknotes” and an “electronic means of payment for retail payments”, but that difference is key because a different legal basis governs each option. And the paper notes there has been a shift from digital cash towards a payments system.

If the CBDC were simply introduced as a digital version of cash, it would legally rely on the European Union Treaty authorizing the ECB and national banks to issue bank notes (Article 128(1) TFEU). However, the digital euro also needs a distribution and settlement infrastructure to function, so its introduction also rests on the need to ensure the smooth operation of payment systems(Article 127(2.4) TFEU).

If there were ever a legal challenge, based on current legislation, the courts tend to look for a “center of gravity” and prioritize one legal basis over the other. However, there are cases when they may accept a dual legal basis if no center of gravity can be identified. Yet the author notes that “an express Treaty basis would clearly be the first-best solution in the long term.” 

Work is already in progress for EU legislation that would govern the operation of the digital euro payment system. It is still being determined whether this includes a Treaty amendment to support the CBDC issuance.

The paper concludes by recognizing that laying the groundwork for introducing a digital euro will take time. Establishing the appropriate legislative framework, including the need for laws to be enacted subsequently at a national level, could add additional delays. That complicates the initial launch, which if given the go ahead, is currently set for 2027.

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OP: Blackswancapitalist

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(((What EdgeCloud Actually Offers)))

Distributed GPU Network

Thousands of small GPU nodes worldwide.

Businesses don’t need to own or rent giant data center GPUs; they can tap into the network on-demand.

Pay-as-you-go AI compute

Instead of renting a full GPU for a month, you can run inference workloads by the minute or per-token.

Lower barrier to entry for small devs or startups.

Scalability

If a company suddenly needs 10,000 GPUs worth of compute (AI video transcoding, bulk inference, live streaming tasks), EdgeCloud can provision across its decentralized network.

This would be impossible or prohibitively expensive to build in-house.

Specialized workloads

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Ref: https://arxiv.org/pdf/2312.13749

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The U.S. Department of Commerce has officially partnered with leading blockchain oracle providers, Pyth Network and Chainlink, to distribute critical official economic data directly on-chain. This initiative marks a historic shift, bringing immutable, transparent, and auditable data from the federal government itself onto decentralized networks. This is not just a technological upgrade; it's a strategic move to enhance data accuracy, transparency, and accessibility for a global audience.

Specifically, Pyth Network has been selected to publish Gross Domestic Product (GDP) data, starting with quarterly releases going back five years, with plans to expand to a broader range of economic datasets. Chainlink, the other key partner, will provide data feeds from the Bureau of Economic Analysis (BEA), including Real Gross Domestic Product (GDP) and the Personal Consumption Expenditures (PCE) Price Index. This crucial economic information will be made available across a multitude of blockchain networks, including major ecosystems like Ethereum, Avalanche, Base, Bitcoin, Solana, Tron, Stellar, Arbitrum One, Polygon PoS, and Optimism.

This development is closer to science fiction than traditional finance. The same oracle network, Pyth, that secures data for over 350 decentralized applications (dApps) across more than 50 blockchains, processing over $2.5 trillion in total trading volume through its oracles, is now the system of record for the United States' core economic indicators. Pyth's extensive infrastructure, spanning over 107 blockchains and supporting more than 600 applications, positions it as a trusted source for on-chain data. This is not about speculative assets; it's about leveraging proven, robust technology for critical public services.

The significance of this collaboration cannot be overstated. By bringing official statistics on-chain, the U.S. government is embracing cryptographic verifiability and immutable publication, setting a new precedent for how governments interact with decentralized technology. This initiative aligns with broader transparency goals and is supported by Secretary of Commerce Howard Lutnick, positioning the U.S. as a world leader in finance and blockchain innovation. The decision by a federal entity to trust decentralized oracles with sensitive economic data underscores the growing institutional confidence in these networks.

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US Dept of Commerce to publish GDP data on blockchain

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The data includes Real GDP and the PCE Price Index, which reflects changes in the prices of domestic consumer goods and services. The statistics are released monthly and quarterly. The biggest initial use will likely be by on-chain prediction markets. But as more data comes online, such as broader inflation data or interest rates from the Federal Reserve, it could be used to automate various financial instruments. Apart from using the data in smart contracts, sources of tamperproof data 👉will become increasingly important for generative AI.

While it would be possible to procure the data from third parties, it is always ideal to get it from the source to ensure its accuracy. Getting data directly from government sources makes it tamperproof, provided the original data feed has not been manipulated before it reaches the oracle.

Source

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List Of Cardano Wallets

Well-known and actively maintained wallets supporting the Cardano Blockchain are EternlTyphonVesprYoroiLaceADAliteNuFiDaedalusGeroLodeWalletCoin WalletADAWalletAtomicGem WalletTrust and Exodus.

Note that in case of issues, usually only queries relating to official wallets can be answered in Cardano groups across telegram/forum. You may need to consult with specific wallet support teams for third party wallets.

Tips

  • Its is important to ensure that you're in sole control of your wallet keys, and that the keys used can be restored via alternate wallet providers if a particular one is non-functional. Hence, put extra attention to Non-Custodial and Compatibility fields.
  • The score column below is strictly a count of checks against each feature listed, the impact of specific feature (and thus, score) is up to reader's descretion.
  • The table represents current state on mainnet network, any future roadmap activities are out-of-scope.
  • Info on individual fields can be found towards the end of the page.
  • Any field that shows partial support (eg: open-source field) does not score the point for that field.

Brief info on fields above

  • Non-Custodial: are wallets where payment as well as stake keys are not shared/reused by wallet provider, and funds can be transparently verified on explorer
  • Compatibility: If the wallet mnemonics/keys can easily (for non-technical user) be used outside of specific wallet provider in major other wallets
  • Stake Control: Freedom to elect stake pool for user to delegate to (in user-friendly way)
  • Transparent Support: Easy approachability of a public interactive - eg: discord/telegram - group (with non-anonymous users) who can help out with support. Twitter/Email supports do not count for a check
  • Voting: Ability to participate in Catalyst voting process
  • Hardware Wallet: Integration with atleast Ledger Nano device
  • Native Assets: Ability to view native assets that belong to wallet
  • dApp Integration: Ability to interact with dApps
  • Stability: represents whether there have been large number of users reporting missing tokens/balance due to wallet backend being out of sync
  • Testnets Support: Ability to easily (for end-user) open wallets in atleast one of the cardano testnet networks
  • Custom Backend Support: Ability to elect a custom backend URL for selecting alternate way to submit transactions transactions created on client machines
  • Single/Multi Address Mode: Ability to use/import Single as well as Multiple Address modes for a wallet
  • Mobile App: Availability on atleast one of the popular mobile platforms
  • Desktop (app,extension,web): Ways to open wallet app on desktop PCs
  • Open Source: Whether the complete wallet (all components) are open source and can be run independently.

Source

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🔗 Crypto
XRP: r9pid4yrQgs6XSFWhMZ8NkxW3gkydWNyQX
XLM: GDMJF2OCHN3NNNX4T4F6POPBTXK23GTNSNQWUMIVKESTHMQM7XDYAIZT
XDC: xdcc2C02203C4f91375889d7AfADB09E207Edf809A6

 

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