The European Commission (EC) announced plans to control cryptocurrencies, which proposed rules that could limit the development of the Libra cryptocurrency and similar projects.
The plans above include the crypto asset rule set. If approved, these proposals can reassure investors as well as make it easier to develop these operations on a larger scale.
Under the plan, the most valuable cryptocurrencies like Libra would have to be under the oversight of the European Banking Authority (EBA). The EC said it is also considering stricter monitoring of payment systems across Europe. It is expected that this proposal will be discussed in the European Parliament and member countries, and may take several months or years before being passed into law.
Cryptocurrencies have gained popularity among investors since the advent of Bitcoin, but authorities, banks, and the public are still concerned about its security and reliability. In June 2019, Facebook announced plans to issue a Libra digital currency in 2020, with the backing of a basket of currencies that gives the currency a higher real value than bitcoin or other digital currencies.
Facebook and its supporters of Libra believe that the coin will become a global, stable digital currency, and could help billions of people unable to access traditional financial services through reducing costs. many types of payments and transactions.
However, lawmakers and financial regulators in many countries around the world were immediately concerned about the impact on the global financial system, when more than 2 billion Facebook users could use it. this coin.