EU’s head of financial services said on Monday that the EU stands ready to regulate digital currencies if the risks are not resolved globally. Last year, the global boom in digital currency investment, such as bitcoin, triggered a plunge in the volatile prices of these currencies but also caused some people to suffer heavy losses.
Valdis Dombrovskis, vice chairman of the European Commission in charge of financial services policy, said: “This is a global phenomenon and international tracking is very important worldwide.”
“We do not exclude the possibility to move ahead (by regulating crypto-currencies) at the EU level if we see, for example, risks emerging but no clear international response emerging.”
East Brodskis made the remarks after hosting a roundtable meeting with participants including the European Central Bank, industry groups, and the European Financial Stability Board.
In March of this year, the G20 finance ministers and central bank governors will hold a meeting in Buenos Aires, and cryptocurrencies are on the agenda. East Brodskis said the European Union will decide later this year or early 2019 how to solve the problem.
Germany and France said this month that while cryptocurrencies create new opportunities, they could also pose significant risks to investors and be vulnerable to financial crime without security.
However, considering that the virtual currency is only a small part of the financial system, so far no consensus seems to have been reached in the G20 countries. Policymakers are concerned that if they crack down on innovation in this area, they will lose jobs and growth, especially from blockchain technology. East Brodskis said that this technology has broad prospects.
Source: Reuters
