This post was most recently updated on November 16th, 2019
Reuters reached a document that was surprising to the public. It turns out that the European Union (EU) authorities have prepared draft legislation that suggests that the European Community may be considering issuing its own digital currency called Eurocoin.
Reuters announced on November 5 that the bill, which is still a draft, is urging the Member States to develop a common approach to cryptocurrency, probably banning high-risk projects. It is not known how the latter would be defined precisely and whether Bitcoin would fall under this group.
Approval of the project in its current form, which may happen as early as next month, may have far-reaching consequences. More specifically, Reuters suggests that such a law could turn into an EU regulatory campaign against cryptocurrencies.
The European Central Bank is considering to Launch Eurocoin
The project prepared by the Finnish presidency of the EU also suggests that the European Central Bank should consider issuing its own digital currency stating:
“The ECB and other EU central banks could usefully explore the opportunities as well as challenges of issuing central bank digital currencies including by considering concrete steps to this effect,”
It is worth remembering that the European digital currency is increasingly seen as a response to the Stablecoin LibraCoin, which Facebook is working on. In addition, China is working on its digital currency, which is to be ready for its issuance as early as 2020.
The US is silent about its e-currency, although the topic of FEDCoin appeared a few years ago but no recent news about it.
On the other side, Germany wants to push the EU to issue its digital currency.
“If we add Libra, this shows that various digital forms of money may soon be reality and that DLT will play a key role in this respect. Europe must keep up with this competition so that the global financial architecture does not lead to a polarisation between American or Chinese solutions.” – German bankers appealed a few days ago.
The Group of Seven (G7) wealthiest countries in the world, said last month that Sablecoins are an economic threat especially Libra, the facebook coin which has a potential reach of billions. Stablecoins should not be allowed until potential threats those stablecoins poses are addressed.
“At the very least, we need a robust regulatory framework to deal with virtual currencies,” said Markus Ferber, the Vice-Chair of the European Parliament’s Committee on Economic and Monetary Affairs.
“The (executive EU) Commission has been way too … complacent on the issue so far. With the threat of Libra on the horizon, it is time for action now.”
Who had ever thought that the next bitcoin bull run will be fueled from the central bank’s race to create stablecoins. Central bankers are trying to copy bitcoin after having ridiculized it and guess what happens next?
Feel free to post your opinion in the comments below.
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