European Parliament Economic Committee report: Central Bank digital currency and crypto assets are completely different

A report recently published by the Economic Committee of the European Parliament entitled "Crypto Assets: Key Developments, Regulatory Concerns and Countermeasures" pointed out that the decline in cash usage in some countries has prompted the central bank to consider establishing a central bank digital currency (CBDC). The report also pointed out that although the research on the central bank's digital currency was triggered by the emergence of encrypted assets, the central bank's digital currency and encrypted assets are completely different.

According to the report, crypto assets are private assets, and the central bank's digital currency is essentially a sovereign asset; second, the issuance of crypto assets depends on the use of DLT or similar technologies, and the central bank's digital currency is not dependent on the use of any specific technology; third Cryptocurrencies lack the status of fiat currencies, and the situation with central bank digital currencies is just the opposite. The report also pointed out that replacing anonymous and untraceable funds with public, traceable central bank digital currency may completely stop many money laundering and criminal activities. However, this may not be welcomed by the public, because the central bank and government authorities will have detailed information on each transaction. Therefore, the main challenge facing the central bank is to design and implement a central bank digital currency, and it is necessary to strike a balance between user integrity needs and compliance with AML / CFT standards.