Arab Times

EU heavy­weights seek strict rules for dig­i­tal cur­ren­cies

- Business · Finance · Germany News · European Politics · Politics · World Finances · European Union · Berlin · Germany · France · Italy · Spain · Netherlands · Olaf Scholz · Bruno Le Maire · European Central Bank · Facebook

BER­LIN, Sept 12, (AP): Fi­nance min­is­ters from five of Eu­rope’s big­gest economies called Fri­day for the Euro­pean Union to pro­duce strict rules for new, pri­vate dig­i­tal cur­ren­cies such as Face­book­backed Libra and ban those that don’t com­ply.

The min­is­ters from Ger­many, France, Italy, Spain and the Nether­lands said in a joint state­ment that new reg­u­la­tions be­ing drawn up by the EU’s ex­ec­u­tive Com­mis­sion – and ex­pected this fall – should seek to “pre­serve our mon­e­tary sovereignt­y and ad­dress the risks to mon­e­tary pol­icy, and on the other hand pro­tect EU con­sumers.”

The five coun­tries say that if it isn’t clear that a dig­i­tal cur­rency is firmly linked to an ex­ist­ing cur­rency, and if there is a danger to

the sta­bil­ity of fi­nan­cial mar­kets, “what has got off the ground must

be banned,” Ger­man Fi­nance Min­is­ter Olaf Scholz said on the side­lines of a meet­ing with his eu­ro­zone coun­ter­parts in Ber­lin.

France’s Bruno Le Maire stressed “one very sim­ple prin­ci­ple: the (Euro­pean) Cen­tral Bank ... is the only one to be al­lowed to is­sue cur­rency, and this point is some­thing that can­not be jeop­ar­dized or weak­ened by any kind of project, in­clud­ing the so-called Libra project.”

Face­book has backed the Libra project for a so-called sta­ble­coin, a dig­i­tal cur­rency linked to ex­ist­ing cur­ren­cies.

Span­ish Fi­nance Min­is­ter Na­dia Calviño noted that Euro­pean of­fi­cials have long ex­pressed “con­cern on the devel­op­ment of these wrongly called stable­coins - crypto-as­sets is a more cor­rect de­nom­i­na­tion.” She said that Eu­rope could pave the way for a global stan­dard.

 ??  ?? The Span­ish Min­is­ter of Eco­nomic Af­fairs, Na­dia Calvino, (right), is wel­comed by Fed­eral Fi­nance Min­is­ter Olaf Scholz, for the In­for­mal Meet­ing of Eco­nom­ics and Fi­nance Min­is­ters in Ber­lin, Ger­many on Sept 11. (AP)
The Span­ish Min­is­ter of Eco­nomic Af­fairs, Na­dia Calvino, (right), is wel­comed by Fed­eral Fi­nance Min­is­ter Olaf Scholz, for the In­for­mal Meet­ing of Eco­nom­ics and Fi­nance Min­is­ters in Ber­lin, Ger­many on Sept 11. (AP)

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