The European Central Bank could soon be pushed to regulate cryptocurrency. Their main concern is about Facebook’s Diem.
With Facebook’s Diem project opening a path for other Big Tech firms to create their own cryptocurrencies and stablecoins, the European Parliament legislators are now attempting to give the European Central Bank (ECB) even more regulatory power.
The proposal last September named the European Commission’s Markets in Crypto-assets (MiCA) Regulation, will mandate that the ECB will “establish uniform rules for crypto-asset service providers and issuers at EU level.”
Lawmakers are now debating amendments to the proposal which include the ECB “taking a more active role in the authorization of new cryptocurrencies.” It means that the central bank will be able to refuse certain projects from working in the borders of the EU.
If the MiCA is passed, it will make the EU the most crypto-regulated place on the planet.
Dr. Berger also stated that the ECB must be prepared for the power of global stablecoins, specifically Facebook’s Diem, a stablecoin project that aims to disrupt the traditional payments market with a small fee, scalable and fast settlement features. It was known previously as Libra.
The Libra/Diem project has spooked many lawmakers who see the currency, when launched, as a potential threat to the fiscal status quo. Politicians in Europe have drafted legislation that establishes rules for stablecoins and gives the ECB more powers over the “authorization procedure of a new cryptocurrency.”
Dr. Berger also added that a Digital Euro, will be the “best answer” to a powerful stablecoin like Facebook’s Diem.
Right now, it looks like institutions like the ECB could be lagging behind big cryptocurrency projects – including Facebook’s Diem.
To get the latest Cryptocurrency, Blockchain, and Crypto-mining news, please join our Telegram Channel (Note: You may be prompted to install the Telegram App on your Mobile Phone, PC, or Mac – No worries, it’s safe)