Author: Milan Ignjatovic

The euro is the world's second most important currency, ranking behind the U.S. dollar. However, the gap between the dollar and the euro in worldwide use is large. Certain recent U.S. policies, including tariffs, huge tax cuts, and political interference with the Federal Reserve, have reduced the dollar's reputation as a "safe haven" currency. This has contributed to a weaker dollar and a stronger euro. These conditions provide the euro with an opportunity to bolster its global position and provide investors with a real alternative. Greater global standing would provide the euro area with increased "financial independence." It would also serve as an insurance against lost confidence in the dollar and could create funding cost advantages for member states and euro area firms. The share of the euro in foreign…

The European Central Bank (ECB) sold over €150 to €200 million worth of World line SA's bonds, which is a payments processor, on September 18, 2025, according to the Financial Times and other coverage. The ECB disposed of World line SA's bonds because of World line SA's alleged connection to customers scammed? The idea that a move by a central bank to sell assets could be the prelude to a great crisis is not new; it's a story motif repeated throughout history. Let's "face the fact" that if a central bank as powerful as the European Central Bank (ECB) is directly invested in such a dramatic policy shift, it's not done lightly. They're not reacting to some passing glitch; they're responding to what they see as major structural risks to…

BANGKOK — On its surface, it is a straightforward tale: A strong currency, the Thai baht, is damaging the nation's prime export and tourism sectors. The culprit, officials believe, is a recent surge in gold exports. In response, a healthy central bank is considering levying a new gold transactions tax to stabilize the currency, but the outgoing governor of the central bank leaves with one last, foreboding warning about the nation's weak fiscal health. But a closer look at the politics and numbers uncovers far more a complex picture of institutional strain, divergent economic signals, and underlying policy divide on the eve of a historic leadership transition. The Thai baht has recovered 7% to 7.9% since January, one of the region's best in Asia and driving it to a four-year…

Imagine how easy it would be for one computer to crack the encryption protecting our money. That is the threat Central Bank Digital Currencies (CBDCs) face due to quantum computing, and the quest to protect them is already underway. Quantum computers pose a huge threat to the encryption used by Central Bank Digital Currencies (CBDCs) and other digital infrastructure. This is because the mathematics that currently underpins encryption technologies like public-key cryptography (RSA and ECC) relies on problems that are nearly unsolvable for a traditional computer, but which would be effortlessly shattered by a powerful quantum computer using an algorithm like Shor's algorithm. How a Quantum Attack Would Work Most digital security, such as a CBDC, is built on a public-key infrastructure (PKI) where an individual has a public key…

The Digital Yuan (also called the e-CNY, digital currency electronic payment - DCEP) is among the most sophisticated Central Bank Digital Currencies (CBDCs) in development and testing today. China's drive for the Digital Yuan is not merely about financial system modernization; it's also a strategic push with profound implications for international finance, global trade, and economic hegemony. Why China Is Leading the Digital Yuan Push Control Over Financial Transactions: Digital Yuan provides the People's Bank of China (PBOC) with direct supervision over digital payments, diminishing reliance on private financial institutions and firms such as Alipay and WeChat Pay. This implies the government can better monitor, regulate, and control financial flows in the nation. Monetary Policy & Stability: The e-CNY allows China to have full control over money supply and interest…

(SPFS) is the Russian Financial Messaging System designed to ensure secure and efficient communication for financial transfers, especially where international systems such as SWIFT are unavailable or limited. In essence, it is an alternative to SWIFT, whose purpose is to improve the Russian economy and its global financial performance. Key Facts about SPFS: Purpose and Functionality:The SPFS has been built to support the continuous exchange of financial messages, such as payments, trades in securities and settlement of trade between Russian and foreign financial institutions. Similar to SWIFT, the system provides secure, encrypted messages in order to preserve confidentiality and integrity of information. Development:The system was developed by the Russian central bank as part of the steps taken to de-emphasize the country's dependence on international financial infrastructure, particularly SWIFT. The move…

Many non-EU member countries, with a high degree of "euroization," are a perfect case study for a central bank digital currency (CBDC) and its potential effects on their economies. The relationship between the currency of a non-EU state and the euro (EUR) is already quite unique. While the local currency is the official one, the euro is widely used in daily transactions, for savings, and for pricing major purchases like real estate and cars. The exchange rate of the National Bank of the non-EU member state with the euro is actively managed to maintain stability. This very high dependence on the euro is a key weakness. So, our prediction is that if the Digital Euro (CBDC) rolls out, and people express their distrust by moving away from it, here's what…

The debate continues, and many central banks and economic institutes are watching closely how the adoption of a CBDC has improved the lives of people who did not have access to banking services. The coin has two sides, and on the other hand, people are those who are adopting and learning about CBDCs, judging for themselves if the digital currency is a viable option or not. The issue remains for those who like to keep cash in their pockets. For now, a few central banks have already issued a retail CBDC, i.e., they are accessible for public use. The most well-known examples are: The Bahamas (Sand Dollar): In 2020, it was the first country to issue a retail CBDC at a national scale. Its primary objective was to improve financial…

For decades, the U.S. has lived on what economists call its “exorbitant privilege.” The dollar’s dominance as the world’s reserve currency gave America a seemingly endless credit card: it could run massive deficits without consequence, borrow at low cost, and still have foreign investors line up to buy U.S. debt. That era is fraying, and the latest developments suggest the country is walking step by step toward a painful reckoning. The Federal Reserve, once the firefighter of global finance, is now playing with matches in a dry forest. Since mid-2022, the Fed has been shrinking its balance sheet from nearly $9 trillion to about $6.7 trillion. This “quantitative tightening” may be meant to tame inflation, but it also risks starving the system of liquidity. Banks, businesses, and households depend on…