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The European Union would create a body to monitor digital currencies

September 11, 2020

In the next weeks The European Union could take the first step to become the first major jurisdiction to regulate cryptocurrencies. This was reported from Spain through an article in El Economista signed by Jorge Valero.

After this post, There is a 167-page draft of the European Commission’s proposal which contains an important novelty: “The EU will set up a new college with national and European authorities to oversee key digital currencies“.

According to Valero Regulation would put Europe at the forefront of control and surveillance of the digital environment. as already happened with data protection. And he quoted the Executive Vice-President of the Financial Services Commission, Valdis Dombrovskis, who said last June: “I think Europe is capable of leading the way in regulation.”

The European Union would create a body to monitor digital currenciesThe European Union would create a body to monitor digital currencies

On the other hand, the article pointed out The authorities are particularly concerned about stable coins: “By pegging them to national currencies, these ‘stable coins’ try to avoid the whirlwind of the Bitcoin market and other very volatile projects. However, regulators fear they could destabilize the global economy, especially if they could potentially reach 2.7 billion users worldwide, as is the case with the Facebook initiative. ”

European stability

Valero also wrote: “The aim of the new rules is to create legal certainty, support innovation, protect consumers and investors, guarantee financial stability and market integrity in the EU, according to the draft of the document”.

“Some Member States (Germany, France and Malta) have already drafted national legislation in this area that remains in line with Community standards,” he added.

However, he made this clear The Commission’s proposal will not cover digital currencies currently being developed by central banks.

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