EU aims to introduce blockchain, stablecoins for cross-border payments in 4 years
LONDON (UK) – The EU will formulate new rules within four years to ensure that cross-border payments are faster and cheaper through blockchain and stablecoins.
The European Commission is slated to unveil its strategy to boost the greater use of digital currency when 78% of payments in the euro zone are in cash. The commission is also looking at a rapid tectonic shift to “instant” payments with the spread of the coronavirus spurring cashless payments.
The commission will prepare a draft legislation to explain how the existing regulations apply to crypto assets and in places where there are gaps, new rules will be formulated.
“By 2024, the EU should put in place a comprehensive framework enabling the uptake of distributed ledger technology (DLT) and crypto-assets in the financial sector,” said an EU document regarding the shift to cryptocurrency. “It should also address the risks associated with these technologies.”
Stablecoins are a variety of cryptocurrency and they are often supported by traditional assets. They became part of policymakers’ agendas last year when Facebook came out with its plans for Libra token.