European Union’s Finance Ministers Places Defacto Ban On Libra
European Union’s Finance Ministers Places Defacto Ban On Libra
December 9, 2019
European Union’s Finance Ministers Places Defacto Ban On Libra
European Union’s Finance Ministers Places Defacto Ban On Libra
December 9, 2019

European Union’s Finance Ministers agreed that Libra’s ongoing organizational snags and run-ins with regulators continue into December that Libra cannot be launched in the EU until concerns are adequately addressed.

However, they issued a joint statement citing regulatory “challenges and risks.”

It has been reported last month that the “Managed Stablecoins are Securities Act of 2019” proposed legislation in the U.S. that seeks to regulate Libra as security, going against Libra representatives’ stated vision for the project.

David Marcus, the project head, has loosely compared Libra to something more like a PayPal-type payments platform. Though devs are reporting notable successes with the testnet, and a 2020 release is still in view, regulatory worries continue to crop up. Most recently, from EU Finance Ministers through the EU Council and Commission.

ALSO READ :  Ubirch Partners With Centogene For Securely Handling The Results Of COVID-19 Mass Testing

The Ministers stated:

“No global stablecoin arrangement should begin operation in the European Union until the legal, regulatory and oversight challenges and risks have been adequately identified and addressed.”

Like most official statements surrounding the Libra project thus far, the EU Finance Ministers are careful to give lip service to potential benefits.

The statement reads:

“Technological innovation can produce great economic benefits for the financial sector, promoting competition and financial inclusion, broadening consumer choice, increasing efficiency and delivering cost savings for financial institutions and the economy at large.”

However, the promotion of concepts like financial inclusion is soon tempered with commonly repeated regulatory lines when it comes to cryptocurrencies:

“At the same time, these arrangements pose multifaceted challenges and risks related for example to consumer protection, privacy, taxation, cyber security and operational resilience, money laundering, terrorism financing, market integrity, governance and legal certainty.”

Likewise, the statement ends by turning the focus away from private solutions to state-sponsored initiatives like Central Bank Digital Currencies (CBDC) and praising the European Central Bank (ECB).

ALSO READ :  Chen Weigang To Talk About ICO Regulations And Digital Currency Trading In China

The statement also reads:

“We note that the ECB and other central banks and national competent authorities will explore further the ongoing digital transformation of the payment system and, in particular, the consequences of initiatives such as “stablecoins”. We welcome that central banks in cooperation with other relevant authorities continue to assess the costs and benefits of central bank digital currencies…”

However, the joint statement comes as the Commission is reportedly working on stablecoin regulation already.

 Valdis Dombrovskis said:

“Today the Ecofin endorsed a joint statement with the Commission on stablecoins. These are part of a much broader universe of crypto assets … A number of Member States like France, Germany or Malta introduced national crypto asset laws, but most people agree with the advice of the European Supervisory Authorities that these markets go beyond borders and so we need a common European framework.”

When the EU and governments worldwide will finally be ready for Libra, if ever, remains to be seen. As a large chunk of major league members has left the Libra Association already, such as PayPal, Visa, and Mastercard in recent months, the project has no shortage of challenges as it continues pushing forward.

ALSO READ :  Yiedl To Launch P2P Marketplace For NFT Mortgages and Rentals

Source: developers.libra.org | news.bitcoin.com


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Money on Chain Launches TEX With A Unique Twist

Money on Chain Launches TEX With A Unique Twist

Money on Chain (DeFi protocol), a lending platform and stablecoin issuer based on Bitcoin (BTC) sidechain RSK, has announced the launch of TEX, an automated token swap platform based on an order book, with a unique...

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.