BRUSSELS (Reuters) – The European Union’s finance commissioner, vowed on Tuesday to propose new rules to regulate the virtual currency as a response to Facebook’s (FB.(O) to establish, with the balance of the EU is of the opinion that a risk to financial stability.
The european Commissioner designate for An Economy that Works for People, Valdis Dombrovskis of Latvia, speaking as if he was present at the hearing in the European Parliament in Brussels, Belgium, on 8 October 2019. REUTERS/Francois Lenoir
France and Germany have said that it is the Scale, the size of which would dwarf cryptocurrencies, such as bitcoin, would be able to limit their monetary sovereignty.
“Europe needs a common approach to the crypto-assets, such as a pair of Scales,” Valdis Dombrovskis told EU lawmakers at a confirmation hearing. “I’m going to bring forward proposals for new legislation in this area.”
The EU has no specific regulations on cryptocurrencies, that is of the Scale, it was announced in June, was seen as a marginal problem by the majority of policy-makers, because only a tiny fraction of the bitcoins or other digital currency are converted into euro.
Dombrovskis has opposed the regulation of the digital currency in the last five years, he has served up until now. He’s made it clear his change of heart comes from Facebook, it’s time to up the Scale, a digital currency that “can have systemic effects on financial stability,” he told the lawmakers.
The EU is now pushing for the G20 to a global action, click “stablecoins,” an EU document circulated last week, he said.
Facebook is scheduled to Scale, it is the most well-known of the stablecoins – cryptocurrencies backed by assets, such as a conventional cash deposits, short-term government securities, gold or platinum.
Libra, the scales would be at risk, Dombrovskis said, ” because of Facebook’s millions of users in Europe will be able to pay with the digital currency.
An EU official said there was no timetable for the presentation of the new rules.
Dombrovskis said that the crypto-regulation should be focused on the defense of financial stability, consumer protection and addressing the risks of money laundering through crypto-assets that can easily cross borders.
Dombrovskis, a former prime minister of Latvia, said that the EU needed to rethink its defenses against financial crime. He also said that he saw “a lot of merit” in the shift of some oversight from an independent body of the EU, without any clarification as to whether this meant the establishment of a new anti-money laundering agency, or the strengthening of existing institutions.
In his address to the lawmakers, Dombrovskis promised a “sustainable Europe ” investment plan”) in order to unlock the 1 trillion euro ($1.1 billion) from private-and public-sector green investment over the next ten years.
He said that the plan would be made on the basis of the warranties and the resources of the general budget of the european union and the European investment bank, while the rest of the money is expected to come from the private sector.
Reporting by Francesco Guarascio; editing by Larry King