EU Continue To Look Into Libra Over Privacy Worries

EU Continue To Look Into Libra Over Privacy Worries
  • EU are doubling down on their commitment to Libra.
  • Will the stablecoin launch in the EU?
  • There isn’t a lot of clairty surrounding the coin at the minute.

The launch of Facebook’s Libra is being seriously looked into by the European Union as they are doubling down on their commitment to block the upcoming stablecoin given the fact that it could deem the project to present “unmanageable or excessive risks.”

Earlier this week a draft document was set to be on the table for discussion at a meeting of European Union’s finance ministers for Friday just gone. Such a document states that “all options should be on the table”. This isn’t limited to just the impediment on the stablecoins very development. 

An impossible decision

Prepared by Finland, the document is an original text, which currently holds the six-month rotating presidency of the European Union Council, according to CT

“Beyond emphasizing that preventing the project’s development remains a possible measure, the document states that Libra and similar initiatives “should not begin operation in the EU” until all challenges and risks have been identified and tackled.”

The document highlights that currently, the lack of ironclad clarity surrounding Libra “makes it impossible to reach definitive conclusions on whether and how the existing EU regulatory framework applies.”

Regulators and lawmakers within the EU have got to act now and quickly but should evenly allow for any new rules being based on ‘sound evidence’ and ‘general principles’ that it would apply to all prospective global stablecoins according to the document.

The president of Romania’s Fiscal Council, Daniel Daianu spoke in an interview earlier this week on Wednesday and classed the Facebook stablecoin as a very dangerous asset, noting that these kinds of entities “are part of the logic of those who believe that there is a need for parallel markets, the disappearance of central banks [...] The financial crisis ruined the reputation of governments and central banks, and some think we need other currencies, parallel circuits, non-hierarchical structures [...] It is not by chance that libertarians are so attached to this vision.” 

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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