Fun

EU Finance Ministers Place Defacto Ban on Libra

News Feed - 2019-12-07 02:12:25

EU Finance Ministers Place Defacto Ban on Libra


Libra’s ongoing organizational snags and run-ins with regulators continue into December, as EU finance ministers agreed Thursday that Libra cannot be launched in the EU until concerns are adequately addressed. The finance ministers issued a joint statement citing regulatory “challenges and risks.”


Also Read: Libra Testnet Fails to Impress as New Legislation Looms Lawmakers Still Reluctant


Just last month news.Bitcoin.com reported on the “Managed Stablecoins are Securities Act of 2019,” proposed legislation in the U.S. which seeks to regulate libra as a security, going against Libra representatives’ stated vision for the project. Project head David Marcus 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 via the EU Council and Commission.


The ministers agreed in a joint statement Thursday that: 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. “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,” the statement reads.


However, 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.


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). “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…”


Libra Struggles On


The joint statement comes as the Commission is reportedly working on stablecoin regulation already, with VP Valdis Dombrovskis saying in a speech: “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 have 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.


What do you think of the EU Finance Ministers’ joint statement? Let us know in the comments section below.


Images credits: Shutterstock.


Want to create your own secure cold storage paper wallet? Check our toolssection. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin pagewhere you can buy BCH and BTCsecurely. Share this story: Tags in this story borderless, Cryptocurrency, Digital Assets, EU Commission, EU Council, Europe, Facebook, Finance Minister, financial inclusion, Government, Libra, Regulation, Stablecoin Related SEC Approves Bitcoin Futures Fund REGULATION | Kevin Helms


The U.S. Securities and Exchange Commission (SEC) has approved an investment fund that will invest in bitcoin futures contracts. SEC… read more. RBI Governor Discusses Crypto and Central Bank Digital Currency REGULATION | Kevin Helms


The governor of the Reserve Bank of India (RBI), Shaktikanta Das, spoke about cryptocurrency during a press conference on Thursday.… read more. Graham Smith


Graham Smith is an American expat living in Japan, and the founder of Voluntary Japan—an initiative dedicated to spreading the philosophies of unschooling, individual self-ownership, and economic freedom in the land of the rising sun. Please enable JavaScript to view the comments powered by Disqus.

News Feed

BlackRock’s head of crypto doesn’t see Bitcoin as a ‘risk-on’ asset
Felix Ng15 hours agoBlackRock’s head of crypto doesn’t see Bitcoin as a ‘risk-on’ assetEquities, unemployment, job numbers or manufacturing have no connection to Bitcoin, says BlackRock’s head of digital assets
Logan Paul denies CryptoZoo scam, Munchables boosts security: Nifty Newsletter
Ezra Reguerra5 hours agoLogan Paul denies CryptoZoo scam, Munchables boosts security: Nifty NewsletterNFT game Munchables is reworking its multisig and restructuring its team after a hacking incident costing millions of
Antpool Reveals Plans to Drop Ethereum Ethash Support, Plans to Keep Mining ETC
Antpool Reveals Plans to Drop Ethereum Ethash Support, Plans to Keep Mining ETC Antpool, the bitcoin mining pool affiliated with Bitmain, has announced the crypto mining operation
Ethereum Accumulation Is Almost Over – Breakout Above $2,200 Could Trigger Expansion Phase
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Brazil’s $90B Crypto Inflows to Create Meme Coin Hype for Altcoins like Best Wallet Token
Este artículo también está disponible en español. Gabriel Galipolo, Brazil’s Central Bank chief, said in a recent event that the use of crypto has surged in the country
Hong Kong sees surge in crypto license applications
Arijit Sarkar11 hours agoHong Kong sees surge in crypto license applicationsOn Feb. 20, Huobi HK became the 18th crypto exchange to apply for a virtual asset trading platform license with the Hong Kong Securities and Fut
Biggest Movers: ADA Nears 1-Week Peak, as MATIC Moves to Highest Point Since September
Biggest Movers: ADA Nears 1-Week Peak, as MATIC Moves to Highest Point Since September Cardano closed in on a one-week high to start the week, as the token climbed for a fourth st
Martin Young2 hours agoCanadian regulatory body clarifies stablecoin rules for exchanges and issuersThe umbrella organization for Canada’s securities regulators has set conditions for trading and issuing stablecoins.56
Gareth Jenkinson12 hours agoEthereum NFT royalties hit 2-year low as Bored Ape floor price falls below 30 ETHNFT royalties are an important gauge of incoming revenues to fund the ongoing development of various projects i
Ghana Central Bank Working to Make CBDC Available to Offline Users
Ghana Central Bank Working to Make CBDC Available to Offline Users The Ghanaian central bank is seeking to make its digital currency, the e-cedi, available to offline users, an off
Crypto Exchange Binance Ceases Trading in Singapore Dollars to Comply With Regulations
Crypto Exchange Binance Ceases Trading in Singapore Dollars to Comply With Regulations Cryptocurrency exchange Binance has announced that it will cease offering trading pairs and p
Gareth Jenkinson13 hours agoPolygon co-founder: $1B bet on ZK-rollups paying offPolygon has allocated an estimated $1 billion on zero-knowledge technology underpinning its Ethereum scaling layer-2 solutions.2252 Total vi