The EU is planning to regulate Bitcoin and Co. as well as its own crypto-honey 2

The EU is planning to regulate Bitcoin and Co. as well as its own crypto-honey

In mid-June, Facebook introduced its crypto Libra and has big plans. But consumers and politicians doubted from the start whether the social network should also have power over a means of payment. The EU wants to counter.

Facebook BalanceThe current status of (non) supporters of the Libra

Already failed before departure?

Whether the Facebook Balance starts or not, is not yet clear for the moment. The project being subjected to a massive political attack, the skepticism is great, perhaps even too great. So, have already announced important partners, but do not participate in Libra and these are financial heavyweights such as PayPal, MasterCard, Visa and eBay, they have all retreated in recent weeks from the Facebook project.

Of course, Libra has also been tested in the European Union and critically prevented, a crypto-well knows no limits per country, at least not as they were with previous payment methods. But even in the EU, it is clear that crypto-treatments are not an ephemeral trend that simply disappears.

Because, according to a report from the Reuters news agency, financial experts have submitted a draft document in which the EU deals with the subject of crypto-treatments. This project could be submitted to the EU Finance Ministers in December. The purpose of this paper is to develop a common approach to digital currencies.

EU Coin

The document contains several key points or approaches that should be discussed. On one side, the EU wants to see how to regulate crypto and current Stablecoins (which, like Libra, are guaranteed by real money). High risk currencies could also be banned here.

On the other hand, the EU wants to see if it is possible to establish a secure and controlled system by the European Central Bank (ECB) and which eliminates bank accounts and traditional intermediaries. A digital currency exploited by the ECB could also reduce transaction costs by eliminating intermediaries. However, these considerations, including those related to regulatory milestones, are still in their infancy, so it is still unclear whether and what the EU is considering or implementing.

Bitcoin, money, crypto
Bitcoin, money, crypto, euro, coins
Miloslav Hamk / CC0

The EU is planning to regulate Bitcoin and Co. as well as its own crypto-honey 3