Copy link
Increase text size
Decrease text size
Link copied

European Union to create encompassing law for Libra, other stablecoins

The European Union will be conducting a meeting tomorrow aimed at regulating Libra and other stablecoins, essentially putting up the foundation of the regulatory framework that would govern this space in the future.

Image via Bankenverband (Flickr)

Thu, 07 Nov 2019, 07:37 am UTC

Yesterday, reports proliferated that the European Union may be looking to create its own central bank digital currency (CBDC). But it appears that the union isn’t preparing for such a thing as it just clarified that the recent draft penned by the Finnish EU presidency is geared towards the regulation of stablecoins.

To be precise, the document is aimed towards thwarting the launching of Facebook’s Libra, a global stablecoin that is the source of apprehension among financial leaders as it’s poised to disrupt the traditional banking system. The EU will be discussing tomorrow how to approach Libra and other stablecoins in the future.

Regulators and lawmakers are trying to strike a balance between restrictions that would prevent illicit activities spawned by this emerging currency and fairness that would ensure that the rules don’t suffocate the innovation moving forward. They’re also trying to create a regulatory framework that would encompass existing stablecoins and its other kin that will be surfacing in the future, CoinDesk reported.

Countries expressed their concern over Libra

France and Germany have already announced that they’re going to prevent Libra from operating within its borders following Facebook’s announcement back in June. Sun Tianqi, the chief accountant of China’s State Administration of Foreign Exchange (SAFE), has also said that Libra should be a major concern for countries, citing illegal cross-border financial activities as the reason behind the threat.

Due to this massive resistance, some of Libra’s backers have already dropped out of the consortium including Visa and Mastercard. But this hasn’t stopped Libra from its tracks. In fact, the project is still moving forward with corporate juggernauts and venture capitals refusing to surrender the idea behind the concept.

The dangerous idea behind Libra’s inception

Facebook CEO Mark Zuckerberg believes that Libra will open up the doors for people who have no access to banking, allowing them to finally join the financial ecosystem without the need to involved intermediaries. But regulators argue that the only people that Libra will be helping are drug dealers, money launderers, and terrorist groups.

Romania’s Fiscal Council, Daniel Daianu, recently said that the reason why Libra poses a massive threat towards the traditional financial institution is due to the desire to get rid of central banks altogether. If Libra is allowed to flourish, it could herald the first every global currency in the world, eliminating the need for banks as everyone will migrate to the digital space, BR reported.

Image credit: https://www.flickr.com/photos/bankenverband/

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $10,110.20 (+3.34%)
  • Ethereum (ETH) $280.14 (+4.43%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $418.40 (+1.72%)
  • Bitcoin SV (BSV) $308.06 (-2.92%)
  • Bitcoin (BTC) $10,110.20 (+3.34%)
Feb 19, 2020 (Wednesday)
06:00
Crypto Technicals: BTC/USD consolidates previous session's spike, 'Golden Cross' keeps scope for further upside
05:03
Crypto finance firm Amber raises $28M in Series A funding
04:32
China upgrades national PPP information platform to use blockchain, AI and big data
Feb 18, 2020 (Tuesday)
13:26
Enjin’s game development platform goes live on ethereum
12:14
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
12:14
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
12:13
Boerse Stuttgart's blocknox to offer crypto custody services to institutional clients
11:12
Crypto derivatives exchange Deribit lists daily ether options
10:48
UEFA EURO 2020 tickets to be distributed using blockchain-based ticketing system
10:12
South Korean and Singaporean crypto exchanges partner to develop new services
09:42
Russian central bank completes blockchain tokenization pilot in its regulatory sandbox
08:17
Crypto Technicals: ETH/USD retraces brief dip below 200H MA, close above 5-DMA to see upside resumption
08:16
Crypto exchange FCoin likely to default after up to $130M bitcoin shortfall
06:46
France-based Lagardère Sports partners with blockchain-based fan engagement platform Chiliz
05:36
Binance launches cloud solution to simplify launching cryptocurrency exchanges
04:52
Crypto Technicals: BTC/USD hovers around 21-EMA (9690), potential 'Golden Cross' limits downside
04:51
Telecom giants jointly test blockchain solution for automating roaming discount agreements
Feb 17, 2020 (Monday)
13:34
Fullerton Markets adds support for cryptocurrency deposits and withdrawals
13:02
Crypto asset custodian Copper raises $8M in Series A round
12:06
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft