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Digital currencies like Facebook's Libra not allowed in the EU until risks are addressed

Monday 9 December 2019 13:08 CET | News

EU finance ministers have agreed that stablecoins, private digital currencies like Facebook’s Libra, should not be allowed in the European Union until the risks they could pose are clearly addressed.

Stablecoins are digital currencies that are usually backed by traditional money and other securities, while cryptocurrency coins like Bitcoin are not. Both are cryptocurrencies, according to Reuters. Nevertheless, EU ministers said they could consider EU rules to regulate crypto-assets and stablecoins as part of a global plan.

The EU commission is already working on this new regulation, Reuters cited EU finance commissioner Valdis Dombrovskis. Ministers also praised the European Central Bank’s work on a public digital currency, which could represent an alternative to private initiatives. The ECB said this type of currency could be necessary if payments within Europe remained too expensive.

Its possible adoption would be accelerated by signs of lower cash usage, the ECB said, warning however that the impact of such an initiative on the financial system could be very large, and therefore would need to be assessed carefully, the online publication added.
Source: Link


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Keywords: stablecoins, digital currencies, Facebook, Libra, EU, Bitcoin, Europe
Categories: DeFi & Crypto & Web3
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Countries: Europe
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DeFi & Crypto & Web3