Governments around the world face tough choices when it comes to cryptocurrency: over-regulation and risk losing the benefits to the economy, or doing nothing and making themselves vulnerable to those who go one step higher. Currently, the European Union cannot figure out what to do about Libra, the digital currency to be released by Facebook in 2020.
According to a Feb. 19 memo released by Executive Vice-President Dombrovskis on behalf of the European Commission, the Libra Association has failed in its answers to questions from the EU. As a result, all information provided by Facebook remains “insufficient to determine the precise nature of Libra and, by extension, the relationship with existing EU legislation.”
However, Dombrovskis also stated that the Commission is “willing to act quickly” when it comes to exploiting the potential of crypto by regulating and monitoring. Such a position confirms their December. 5 declaration to police stables and monitoring of any risk to the financial stability of the region.
Facebook CEO Mark Zuckerberg spoke in front of a US House of Representatives Financial Services Committee on October 13 last year. Lawmakers reiterated concerns similar to those of the European Commission and quoted vague answers that Zuckerberg gave regarding the digital currency:
“I don’t really know if Libra will work.”
Public authorities in both the United States and the EU are working on a better understanding of crypto. The Commission has launched an open public consultation that will be available until 19 March, while the Internal Revenue Service in the United States is preparing for a cryptocurrency summit on 3 March.
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