"The process of adopting the euro in Croatia was more demanding than in the countries that started it before the global financial crisis, and the successful changeover to the euro reflects the timely and exhaustive planning and dedicated work of all stakeholders," said Ana Šabić, Director of the European Relations Department at the F2 - Future of Fintech conference, organised by the Bug magazine on 28 and 29 November 2023.

According to her, a logistically very demanding cash exchange operation was successfully implemented, the conversion of loans, deposits and other instruments was carried out on 1 January in accordance with the rules, and cashless payment transactions, bank cards and ATMs functioned properly already in the first hours of 1 January.

"Croatia joined the euro area amid historically high inflation and the strongest cycle of tightening of the ECB's monetary policy, but despite specific circumstances, the expected positive effects of the introduction of the euro on Croatia – the elimination of currency risk, (relatively) lower interest rates, lower transaction costs and greater resilience to financial crises and shocks – have fully materialised. The impact of the introduction of the euro on inflation was very mild, in line with other countries’ expectations and experiences. Citizens’ support grew as the day of euro adoption approached, although the level of support fell in 2022 under the influence of inflation. The high level of citizens' support for the euro confirms the assessment that the changeover to the new currency went smoothly and without disruptions," said Ana Šabić, adding that on the date of the introduction of the euro, the Croatian National Bank became part of the Eurosystem. Within the Eurosystem, the CNB actively participates in the creation of the common monetary policy and implements the common monetary policy.

"The CNB continues to carry out a number of activities independently, in accordance with common procedures where they exist (macroprudential policy, international reserves management, smooth operation of the payment system, issuance of euro banknotes and coins, production of official statistics, supervision of the implementation of regulations on the prevention of money laundering and terrorist financing). Within the banking union, the CNB exercises supervision of credit institutions as part of the Single Supervisory Mechanism (SSM), and is also the resolution authority for credit institutions in Croatia together with the Single Resolution Board (SRM), "said the CNB Director of the European Relations Department at the conference.

Dario Hlupić Radić, Head of the Supervisory Law Division
Source: Bug

Dario Hlupić Radić, Head of the Supervisory Law Division at the CNB, speaking about the regulation of crypto-assets in Croatia and the European Union, pointed out that the European Union was working on rules to encourage the development of crypto-assets and the technology behind them in order to encourage their development, but at the same time to protect consumers.

"Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets governs offers to the public and the admission of crypto-assets to a trading platform, the licensing and supervision of issuers of asset-referenced tokens (ARTs), issuers of e-money tokens (EMTs) and crypto-asset service providers (CASPs). Also, the Regulation protects the holders of crypto-assets when they are issued, offered to the public and admitted to trading, as well as the clients of crypto-asset service providers, and prevents market abuse. Each Member State is required to designate one or more competent authorities to supervise the application of the Regulation, and the European Banking Authority (EBA) will be competent to supervise significant issuers of asset-referenced tokens and e-money tokens," said Dario Hlupić Radić.

"Penalties," he stressed, "are strict, so fines can amount to 12.5% of the total annual turnover, and in case of violation of the provisions on market abuse the fine can amount to 15% of the annual turnover, and for natural persons up to EUR 5 million, if the benefit is obtained the penalty can be three times the amount of the benefit achieved.

The Regulation applies from 30 June 2024 in the part of ARTs and EMTs, and in full from 30 December 2024, declared Dario Hlupić Radić.