- The EU draft document introduced the idea of European digital coin.
- The document may be discussed by EU ministers this Friday and adopted during the next meeting in December.
European countries may urge the European Central Bank (ECB) to consider issuing its own digital currency, Reuters reports citing an EU draft document, prepared by the Finnish EU presidency and seen by the media outlet.
The coin may become a European alternative to Facebook’s Libra. However, the document also urges the countries to develop a unified approach to cryptocurrency regulation and consider pan-European bans for projects that are deemed too risky.
The EU ministers may discuss the proposals presented in the document as early as this Friday, November 8, and adopt it at their next meeting on December 5.
“The ECB and other EU central banks could usefully explore the opportunities as well as challenges of issuing central bank digital currencies including by considering concrete steps to this effect,” draft says as cited by Reuters.
The document may lead to a stronger regulatory push against cryptocurrencies in Europe. Stablecoin projects like Facebook’s Libra are at risk as many European countries, including France and Germany, expressed their concerns about this coin and suggested that it should be banned in Europe.
The EU draft document echos G7 concerns over risks to the financial system, money laundering and customer protection issues. However, apart from a consistent regulation for digital asset, it recommends a complete ban on potentially risky projects.
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