US House Enforces Ban On CBDC In Defence Policy Bill

The US House of Representatives added a prohibition on central bank digital currencies (CBDCs), to its most recent defence policy bill. The provision is included in the National Defense Authorization Act for fiscal year 2026, a bill that addresses defence expenditures and security matters. Since this bill is deemed necessary, lawmakers tend to add other items to it so that they can pass.

The new provision bars the Federal Reserve from issuing, testing, or creating any type of CBDC. It also prohibits the Fed from selling digital financial services to consumers directly. Lawmakers say that a digital dollar could put too much power in the hands of the government and trigger surveillance issues.

There has been an exception made for stablecoins, being privately issued tokens typically pegged to the US dollar. These are still permitted, as long as they are open and run permissionless. This is an indication of favoring private sector solutions over a government-managed digital currency.

Pressure for this prohibition has come strongly from House Republicans. Previous debates on a number of crypto-related pieces of legislation were put off until leadership committed to obtaining a CBDC ban. Eventually, the ban was attached to the defense bill due to this political stalemate.

Although the House has moved on this step, the Senate is less certain. By linking it to a bill that must pass, lawmakers are making the passage of the measure more likely in the end, even if opposition in other fights materialises.

Europe Considers Ethereum And Solana For Digital Euro Rollout

Europe is progressing quicker on its digital euro initiative. The European Central Bank (ECB) and European Union (EU) policymakers are now considering establishing the digital euro on public blockchains such as Ethereum or Solana. Previously, they preferred a private system accessible to only a few trusted institutions.

The change is fuelled by increasing concerns about the dominance of US dollar-pegged stablecoins. The coins now dominate the market globally and may undermine the status of the euro in finance and payments.

With a public blockchain, anyone would be able to use the system anywhere on the planet. This would potentially get more users for the digital euro and make it more widely used. There are downsides to public blockchains, though, since transactions would be open to anybody, privacy would be a huge issue.

Both possibilities are still being looked at by the ECB: a public or private model. No decision has yet been reached.

This comes after a swift transition in the US, where fresh stablecoin legislation has unsettled European policymakers and made them keen to act.

Simply put, Europe is trying to safeguard the euro's viability by looking into whether to construct its digital currency on open networks such as Ethereum or Solana, wanting innovation and access but careful about concerns over privacy and controlling issues.

Taiwan Prosecutors Indict 14 In $72 Million Money Laundering Case

Prosecutors in Taiwan charged 14 individuals in what has been described as the nation's biggest cryptocurrency money laundering case. The group allegedly scammed over 1,500 victims and collected around $72 million in combined losses, officials said.

The suspected ringleader, Shi Qiren, and others are charged with fraud, money laundering, and organising crime. Prosecutors' intent to revive assets worth millions seized, including Bitcoin, Tether, and Tron. They also intend to confiscate $1.8 million in cash, two high-end cars, and approximately $3.1 million in bank accounts.

The investigations started in April when all 14 suspects were detained. Shi Qiren will face 25 years behind bars if he is convicted. He has thus far declined to plead guilty.

The syndicate allegedly ran under two business names, CoinW and CoinThink Technology Co., which collectively established approximately 40 shops in Taiwan. The shops collected franchise fees and placed deposit machines that accepted cash. The syndicate asserted that their business was approved by Taiwan's Financial Supervisory Commission, cheating 1,539 individuals out of money.

One of the group members is alleged to have deceived Shi himself into siphoning off $93,000 for a dummy registration under anti-money laundering regulations.