The EU is closing the door to the use of “stable coins”, including Libra, in the countries of the Union. At the same time, the Banque de France announces an experiment with a central bank digital currency.
It is not a surprise. The finance ministers of the European Union have once again expressed an end to the use of Libra on the old continent.
In a statement, the ministers detail the reasons which push them to refuse “stablecoins” within the Union. Without citing Libra by name, they believe this ban will remain in effect “until the legal, regulatory and supervisory challenges and risks have been properly identified and addressed. “
Nothing new on the fears of ministers which have already been expressed in Europe and the United States, by political authorities and regulators. They point out in particular the risks »Related, for example, to consumer protection, confidentiality, taxation, cybersecurity and operational resilience, money laundering, terrorist financing, market integrity, governance and legal security. “
Suffice to say that in view of these requirements, it is unlikely that Libra will be able to develop there in the short term.
However, ministers do not completely close the door to the development of “stable-coins”, a category of cryptocurrency, recognizing that they can meet “the expectations of the market and consumers for convenient, fast, efficient and effective payments. inexpensive, especially cross-border. “
Banque France has taken the lead in the project of a “stable coin” piloted by European central banks. From 2020, it will launch experiments to develop a “central bank digital currency” dedicated to large transactions between players in the financial sector (banks clearing houses, etc.), announced on December 4, François Villeroy de Galhau, its governor.
“I see an interest in moving quickly on the issuance of at least one wholesale central bank digital currency in order to be the 1st issuer at the international level and derive the benefits reserved for a benchmark central bank digital currency”, F. Villeroy de Galhau
– Bank of France (@banquedefrance) December 4, 2019
According to Capital, the objective of this “crypto euro” based on Blockchain technologies would be to reduce the cost and the processing time of these transactions.
The first central bank of the EU to embark on such a project, the Banque de France will share its experience in a study on the creation of an “e-euro” which would be intended for transactions between individuals. Another step towards the complete disappearance of cash.