The Spanish government has approved a revised bill from the European Union that intensifies fiscal oversight of cryptocurrencies, while development of the digital euro progresses.

Cryptocurrencies, which are often associated with financial privacy, will face increased scrutiny from public authorities.

The European Commission appears to target the limiting and regulation of all cryptocurrencies not aligned with the upcoming digital euro, which is intended to provide the government with comprehensive control over user transactions.

The EU directive, known as the Directive on Administrative Cooperation 8 (DAC8), is the eighth modification to the EU's Directives on Administrative Cooperation in Direct Taxation.

Its aim is to facilitate and enhance the exchange of information among member states to prevent tax evasion and avoidance in the cryptocurrency sector.

The new legislation on cryptoassets will lead to greater surveillance, as companies dealing with cryptocurrencies will be required to report more frequently and in greater detail to tax authorities regarding user operations.

Furthermore, this regulation will extend to cryptocurrencies held abroad; whether residents of Spain or other nationalities, information about their cryptocurrencies will be communicated to the Spanish tax authorities if they use services within the EU.

Several existing tax laws, including the Income Tax of Individuals (IRPF), the Corporate Tax, and the Wealth Tax, will need to be modified to align with this new regulatory framework.

Additionally, DAC8 mandates that cryptocurrencies can be seized, similar to other property, if debts to public authorities are not settled.

Member countries of the EU will share information collected by tax agencies and may also exchange this data with non-EU countries if agreements permit.

In tandem with these developments, the European Central Bank (ECB) has completed the review of its digital euro framework, incorporating feedback from consumers, retailers, and payment service providers.

An external provider selection process has opened, and investigations have begun to tailor the design of the state-backed cryptocurrency to user preferences.

Results are expected to be published around July.

ECB President Christine Lagarde indicated that the final decision on the issuance of the digital euro will be made in October 2025, after the legislative processes involving the European Parliament, the Commission, and the Council have concluded.

The Bank of Spain has begun implementing the regulatory framework for Markets in Crypto-Assets (MiCA), which aims to align the national financial system with the digital euro requirements.

However, a recent survey by the Spanish Consumer Association (Asescon), conducted with over 3,000 participants, revealed that 70% of Spaniards oppose the implementation of the digital euro.

Opposition stems from concerns over excessive government control of spending habits (54%), risks of digital fraud and scams (30%), and technological difficulties in using the currency (15%).

In the United States, former President Donald Trump issued an executive order on January 23 prohibiting federal agencies from taking any measures to establish, issue, or promote central bank digital currencies, both domestically and internationally.

This order halted any active processes related to the creation of these virtual currencies in the U.S. and restricted the use of foreign central bank digital currencies within the country, potentially complicating the successful advancement of the digital euro.

Through this prohibition, Trump not only prevented federal agencies from exploring the possibility of a U.S. CBDC but also revoked certain actions taken during Joe Biden's administration and established an interagency task force on digital asset markets.

The U.S. government and opponents of central bank digital currencies have expressed concerns that their use may provide the state with excessive information and control over citizen transactions, potentially threatening the nation's sovereignty and financial stability.