The EU’s plan for a new digital currency
The EU is planning to launch its own digital Euro and is considering doing so on public blockchains like Ethereum and Solana. Earlier this summer U.S. President Donald Trump signed the GENIUS Act into law which aims to make the United States the global leader in digital assets. The future is digital, and the EU wants to accommodate the increased demand for digital payments by creating a supplement to physical cash. The idea is to strengthen the euro area and make its monetary sovereignty more robust. A digital Euro would also make payments free for basic use, and instant, both online, in stores and between individuals.
Risks
Credit risk of the issuer:
Investors in the products are exposed to the risk that the Issuer or the Guarantor may not be able to meet its obligations under the products. A total loss of the invested capital is possible. The products are not subject to any deposit protection.
Currency risk:
If the product currency differs from the currency of the underlying asset, the value of a product will also depend on the exchange rate between the respective currencies. As a result, the value of a product can fluctuate significantly.
Market risk:
The value of the products can fall significantly below the purchase price due to changes in market factors, especially if the value of the underlying asset falls. The products are not capital-protected
Product costs:
Product and possible financing costs reduce the value of the products.
Risk with leverage products:
Due to the leverage effect, there is an increased risk of loss (risk of total loss) with leverage products, e.g. Bull & Bear Certificates, Warrants and Mini Futures.
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