Stablecoins leapt onto policymakers' agendas in 2019 when Facebook revealed plans for its Libra token. The European Commission is due to set out its strategy for encouraging greater use of digital finance.
Furthermore, as pandemic lockdowns showed the growing role of cashless payments, the EU wants a rapid shift to ‘instant’ payments generally. Instant payments are suitable for many uses beyond traditional credit transfers, for physical and online purchases, which are currently dominated by payment card schemes, the documents said.
Brussels also wants to make it easier to share data within the financial sector to encourage competition and a wider range of services. The EU executive will present a draft law to clarify how existing rules apply to crypto assets and set out new rules where there are gaps, the documents said.
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