Valdis Dombrovskis to Vow New Rules on Crypto, Libra Stablecoin

Valdis Dombrovskis, the European Union’s Financial Services Commissioner, said that he intends to create a new regulatory framework for cryptocurrencies, particularly Facebook’s Libra stablecoin.

Dombrovskis said in a confirmation hearing seeking for reappointment on October 8 (Tuesday) with EU policymakers:

“Europe needs a common approach on crypto-assets such as Libra. I intend to propose new legislation on this.” Valdis Dombrovskis

Likewise, the former Latvian Prime Minister has been a Vice President of the European Commission for the euro and social dialogue since 2014. He is one of the 28 commissioners in the European Commission from 2014 to 2019 and has been in charge of financial stability, financial services, and capital markets within the EU.

However, Dombrovskis’ comment comes on the heels of an increasing level of scrutiny by the European Commission over Facebook’s Libra cryptocurrency initiative.

It has been reported on October 7 (Monday) by the Financial Times that the commission sent a questionnaire to Facebook and the Libra Association last week, asking them to address various questions regarding financial stability, money reserve and private risks related to Libra.

According to the report, the questioning was part of a push by Dombrovskis to examine how the EU should allow or regulate crypto initiatives like Libra and whether new laws will be in need. However, Dombrovskis has indicated that there is a “strong willingness to act at an EU level” when it comes to Libra.

Source: https://ec.europa.eu and Financial Times

#EuropeanCommission #Facebook #Libra #ValdisDombrovskis

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