Cryptocurrency

The European Union supports the issuance of digital coins of central banks | Breaking News

The draft of a document prepared by the presidency of the European Union (EU) considers the possibility that the central banks of countries of the region to develop their own digital currencies. To this end, it proposes to create a regulatory framework that points not only to the issuance of this type asset, but the private projects are considered high risk.The text, published on the official website of the Council of the European Union this November 6, urges the European Central Bank (ECB) and other central banks and competent national authorities to explore the transformation of digital payment systems. This before the rise of initiatives such as the currencies anchored or stablecoins to meet the needs of a broad market.The statement, which is supposed to be influenced by the controversial release of the criptomoneda of Facebook, pound, would still be subject to amendments to be discussed by the finance ministers of the European Union. The document would be destined to be approved by the member states of the bloc in the coming month of December.

“We welcome that central banks in cooperation with other relevant authorities continue to evaluate the costs and benefits of digital currencies from the central bank, as well as interact with the paying agents in europe with respect to the role of the private sector in fulfilling the expectations of efficiency, speed and low cost of cross-border payments”.Draft document of the EU.

On this topic, a report published by the Reuters news agency said this on November 5 (prior to the publication of the draft) that the EU would be open to issuing a digital currency public. However, a source familiar with the matter, later clarified the content of the proposal a means of communication. In the same, the spokesperson rejected the claims that the document would encourage the EU to create a criptomoneda own, although he admits that this is an option that must be explored.”The statement is to highlight the need for an adequate regulatory framework for the cryptocurrencies anchored and, as a result, you must explore different ideas. One of them is the possibility of having something administered by the ECB and other central banks,” said the source.This approach was made clear in the draft document, in which the EU expresses that “addressing the challenges posed by the currencies anchored requires the coordination of a global response”.It is not surprising that the European Union adopt an open posture to the development of digital currencies of central banks (Central Bank Digital Currencies or CBDC), because few days ago the Association of German Banks said that he wanted to issue a euro digital and that he would cooperate in their development. Although he said that lack of institutional support.Several european countries have openly manifested that will prevent the development of digital currencies risk, as the criptomoneda anchored of Facebook, until they have addressed all the preocupaciones.De indeed, the project of Pound has led to global reactions since the announcement of its launch, among them the nations of the G7, which warned about the serious risks to the financial order and monetary. The G7 said that the initiative would be subject to a regulatory oversight is very strict.Although coins anchored could generate payments cheap and fast to the users, the regulators are concerned about its impact on both the protection of the consumer, as in the topics related to privacy, taxation, cyber security and resilience operational, in addition to money laundering, financing of terrorism, the integrity of the market, the governance and legal security.In the midst of all this, possibly the European Union, not only seek to limit and control the projects of stablecoins in the course, but also offer an alternative articulated by the central banks of the region.