Europe weighs DeFi rates, digital euro, and cyber risks

Homepage > News > Business > Europe weighs DeFi rates, digital euro, and cyber risks Europe’s digital-asset sector continues to develop across financial markets, payments, and regulation, with several developments this week underscoring the increasingly intertwined relationship between digital assets and the traditional financial system. ECB links DeFi lending rates to policy Merchants called to participate on digital euro pilot EU tightens digital wallet reporting A European Central Bank (ECB) study has examined how decentralized finance (DeFi) lending rates respond to monetary policy, just as the bank calls for merchants to participate in its digital euro pilot. Meanwhile, new European Union cybersecurity reporting rules have begun applying to products with digital elements, including some digital asset wallets. Dueling influences on DeFi lending rates A new study from the ECB has found that DeFi lending rates are influenced by the forces of traditional monetary policy and the digital asset market’s appetite for leverage, with the latter able to temporarily overwhelm the former. Stablecoins such as USDC and USDT do not normally pay interest to holders, but users can depo...