EU finance ministers have decided to block Facebook Libra and any other stablecoin (cryptocurrencies backed by conventional money reserves or physical goods), according to a Reuters report. However, despite the news Facebook-sponsored digital currency Libra will eventually get the green lights, said a representative of the project.
The EU, wary of new virtual currencies – Libra in the visor
Private digital coins such as Libra will have to address its risks issue before being allowed in the European Union.
The cryptocurrency has attracted plenty of criticism from global regulators ever since it was announced in June 2018. Some of its original backers (such as Visa and Mastercard) have even abandoned the project in October, leaving Facebook and Libra with fewer supporters when it’s scheduled for release in June 2020.
New public digital currencies, already in the works
On the other side of the barricade, the European Central Bank is working on developing a public digital currency of its own, which could turn out to be an alternative to private initiatives such as Libra.
Furthermore, France has also responded to the so-called threats these stablecoins allegedly pose to its sovereignty and announced it would issue a crypto of its own. The governor of the Banque de France even indicated that the official kick-off would be next year.
At the same time, EU ministers have said they could create rules and regulations for the crypto-based assets and stablecoins. This could be a turning point for the markets, and it will be exciting to see how everything unfolds.
Sources: ccn.com, reuters.com, news.am, euractiv.com, rte.ie
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