BRUSSELS (Reuters) – The European Union’s finance commissioner, pledged on Tuesday, as he has been re-appointed to propose new rules to regulate virtual currencies, such as the balance of the coin, Facebook (FB.D) are planning to launch a.
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
Valdis Dombrovskis, has opposed the regulation of digital currencies, and how to create systemic changes to address money-laundering in the last five years, he has served up until now.
However, France and Germany have said that it is the Scale, the size of which would dwarf the impact of 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. I’m going to bring forward proposals for new legislation in this area,” Valdis Dombrovskis, told EU lawmakers in the confirmation hearing.
He said that, in the regulation of the virtual currency, the EU will have to tackle the “unfair competition law, cybersecurity, and the threats to financial stability”.
The EU currently has no specific regulations on cryptocurrencies, that is of the Scale it was revealed in June, it 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.
But Facebook’s plans have led to a re-assessment, and the EU is now pushing for the G-20 for global action on the digital and crypto-currencies.
Dombrovskis said that the Scale of project, although it is not yet in place, it may pose a risk to financial stability, because of the scale, if Facebook’s millions of users in Europe would be able to use the new digital currency.
He said that the new rules are designed to focus on the defense of financial stability, consumer protection and addressing the risks of money laundering through crypto-assets, that is, the boundary with ease.
Dombrovskis, a former prime minister of Latvia, had opposed this action, despite a series of scandals at banks in your own country, the other Nordic countries and larger EU – countries, but said that the EU is in need of a re-examination of the mechanisms in order to deal with financial crime.
He also said that he saw “a lot of merit,” for the transfer of certain supervisory responsibilities to an EU body, without any clarification as to whether or not this would lead to the creation of a new anti-money laundering agency, or the strengthening of existing watchdogs.
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 Kevin Liffey