Reuters has reached a really surprising document for the public. It turns out that EU (European Union) authorities have prepared a draft law that suggests that the community may be considering the issuance of its own digital currency under the Eurocoin working name.
Will the European Union be at war with cryptocurrencies?
Reuters announced on 5 November that the draft law, which is still subject to numerous changes, calls on Member States to develop a common approach to cryptocurrencies, probably banning “high risk” projects. However, it is not entirely clear how the latter would be defined at all and whether Bitcoin would fall under this group. Rather, it is highly questionable.
Approval of a project in its current form, which may happen next month, but may have far-reaching consequences. Exactly, it suggests that Reuter suggests that such a law could turn into a regulatory campaign by the European Union against cryptocurrencies.
The European Central Bank will certainly consider issuing Eurocoin.
The draft prepared by the Finnish Presidency of the European Union also suggests that the European Central Bank should consider issuing its own digital currency. The ECB and other central banks of the European Union could explore all possibilities and challenges that are directly related to the issuance of the central bank’s digital currencies. In this regard, too, by considering concrete steps in this direction.
The project is said to be discussed in more detail this week, and this Friday in particular.
We must remember very well that the European digital currency is increasingly seen as a kind of response to the stablecoin LibraCoin, on which Facebook is working. In addition, China is also working on its digital currency. Interestingly enough, China is to be ready to broadcast it by 2020. So is the giant of the social media market. So far, the United States has been silent about its e-currency. Nevertheless, we still remember that a few years ago, the topic of FEDCoin came up. However, as you can see, the project itself and all the plans remained only on paper.
Literally a few days ago, we wrote about Germany’s intention to put pressure on the European Union to issue its digital currency.
If we add Libra to this too, we will see that the various forms of digital money will soon be a reality, and the distributed register technology (DLT) itself will play a key role. Europe must keep pace with competition so that the global architecture of finance is not limited to the mere polarization of Chinese and American solutions. This is how bankers from Germany appealed literally a few days ago.
Whether their appeal will be heard or not will prove to be heard in the future. This may be the near future or, unfortunately, a distant date. Time will show everything and also decide. We must be patient.