The Finance Ministers of theEuropean Union meeting in Brussels have formalized their veto at the launch of the stablecoin in the continental territory, at least until you have an adequate regulatory framework to regulate its introduction and circulation. A choice that further curbs the already troubled path of Libra towards debut.
Europe says no to the stablecoin: stop at Libra
The EU calls for the adoption of a common approach in order to mitigate potential risks that accompany the technology. The press release states that "no type of stablecoin will be able to start operations in the European Union until the regulatory and legal challenges have been adequately identified and addressed". What is certain is that since it is a blockchain-based system and not managed by a central body, the imposition of territorial blocks could be more complex than expected.
In any case, the Board recognizes the benefits connected to the concept of cryptocurrency, starting from the simplification of payments between different states, warning however that virtual currencies bring with them certain pitfalls regarding privacy, consumer protection, taxation, cybersecurity, the fight against money laundering, financing of terrorist movements and market integrity .
The issue has already been taken over by the European Commission, working on the necessary standards. A will be launched shortly comparison table, already by the end of the year, involving all the member countries, so as to be able to define some shared rules by all, going beyond those already formulated independently by states such as France, Germany and Malta.
In the text that arrives from Brussels today there is no direct reference to Libra, but a particular sentence (which we quote below in translated form) does not seem to be interpreted in any other way than as a request for clarification against Facebook and other partners of the initiative.
Some recent projects with a global reach have provided insufficient details about how, precisely, they intend to manage risks and operate their business.
We will certainly return to the subject also in view of the roadmap that the group of Mark Zuckerberg has set for the launch of his virtual currency, foreseeing a launch by mid-2020. A term that now seems excessively optimistic, also in consideration of the many and important defections among the founding members.