Category Archives: European Central Bank

Auto Added by WPeMatico

As Libra Looms, ECB Asks Regulators to Act Quickly

As Libra Develops, ECB Warns Regulators to Act Quickly

Executive Board member at the European Central Bank (ECB), Benoît Cœuré, has warned regulators and watchdogs for financial jurisdictions that they have to act quickly because corporate tech giants such as social media mammoth Facebook are now moving into the financial system.

Cœuré was in Southern France on the weekend when he repeated the stance of  ECB that was adamant that such moves, referring to Facebook’s crypto project Libra, would never be allowed to step outside of current requirements. He insisted:

“It’s out of the question to allow them to develop in a regulatory void for their financial service activities, because it’s just too dangerous. We have to move more quickly than we’ve been able to do up until now.”

This isn’t the first time that Libra has caused near panic among regulators and policymakers. In the United Kingdom, its three main financial regulators have been closely collaborating for the best plan of response. Bank of England Governor Mark Carney himself had been in earlier talks with Facebook CEO Mark Zuckerberg regarding Libra and has said that their approach to the crypto was that of “an open mind but not an open door”.

Libra has also irked Washington, with more than 30 Democrat-affiliated groups demanding the project to be aborted as it raises “profound questions”. David Marcus, the executive lead for Libra and other Facebook blockchain efforts, is due to testify before Congress this month.

Cœuré further added that the development of digital currencies does say a little about how existing regulation has deficiencies and that the banking system has failed to adapt to emerging technology. He said: “All these projects are a rather useful wake-up call for regulators and public authorities, as they encourage us to raise a number of questions and might make us improve the way we do things.”

 

BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Image Courtesy: Pixabay

The post As Libra Looms, ECB Asks Regulators to Act Quickly appeared first on BitcoinNews.com.

France Announces G7 Crypto Task Force

G7

France’s central bank has announced plans to create a G7 task to specifically look into cryptocurrency regulations.

Governor Francois Villeroy de Galhau has selected a European Central Bank board member to lead its investigative team, stamping its authority as the current President of the Group of Seven Nations (G7)

The Group of Seven is a group consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. These countries, with the seven largest IMF-described advanced economies in the world, represent 58% of the global net wealth.

“We want to combine being open to innovation with firmness on regulation. This is in everyone’s interest,” Villeroy commented on Friday, adding that what constitutes stability when it comes to finance needs clearer definition, referring of course to cryptocurrency stablecoins and news of Facebook’s much-publicized plans to join the market.

The governor also wants the European Banking Authority to flex its muscles in order to be able to override individual jurisdictions in Europe and create a network of national anti-money-laundering authorities; a much-approved move, given that many countries have been calling for such an agency for some time.

France, which holds the rotating presidency of the Group of Seven nations, has said it does not oppose Facebook creating an instrument for financial transactions. But it adamantly opposes that instrument becoming a sovereign currency.

The French are not alone in ramping up its attempts to keep a closer eye on cryptocurrency. Since Facebook entered the fray, many governments have started to call for ramping up anti-money laundering legislation over fears of an increase in illegal activity moving forward.

BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Image Courtesy: Pixabay

The post France Announces G7 Crypto Task Force appeared first on BitcoinNews.com.

ECB Official Says Central Bank Crypto Could Positively Impact Financial Stability

ECB Official Says Central Bank Crypto Could Positively Impact Financial Stability

A Member of the Governing Council for the European Central Bank (ECB) has spoken positively about central bank crypto or central bank digital currencies (CBDC), labeling them as unique and more efficient offerings from global central banks.

Vitas Vasiliauskas specifically names distributed ledger technologies (DLT) as useful for having positive impacts on financial stability and mitigating the need for intermediaries, although did not extend these thoughts to decentralized cryptocurrency like Bitcoin, insisting that they were very different from central bank crypto.

He explained:

“The CBDC would be a novel type of central bank money. Although also digital, it should be distinguished a traditional reserve account. The CBDC would also be fundamentally different from private crypto assets. This is because it would be — money! It would serve as a medium of exchange, a means of payment and a store of value, just like the current forms of central bank money.”

He praised the characteristics of DLT features in would-be implementations of central bank crypto, saying that “wholesale CBDC” could enhance payments and make securities settlement more efficient, while reducing counterparty credit and liquidity risks. He elaborated:

“In terms of the retail CBDCs, different motivating factors are in play. Clearly, we live in an age characterized by the rise of electronic payment methods. Although these are often more convenient and efficient than paper banknotes, such digital payment solutions are based on commercial bank money.”

Vasiliauskas, who is also the chairman of the board for the Bank of Lithuania and a member of the Board of Governors of the International Monetary Fund, had made these comments at a central banker conference in Washington this week. The Bank of Lithuania falls under the purview of the Bank for International Settlements (BIS).

Last year, BIS made comments against the industry, when general manager Agustin Carstens, told cryptocurrency developers that they should leave the bankers to do the job of creating money.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post ECB Official Says Central Bank Crypto Could Positively Impact Financial Stability appeared first on BitcoinNews.com.

Estonia’s Own Private Bull Run Boasts 900 Crypto Firms in Less Than a Year

Bitcoin News has been following Estonia’s cryptocurrency march with some interest this year, and with over 900 licenses granted within the first year of the regulator’s initial registration ruling in that country, there seems to be no stopping its enthusiasm for the enterprise.

Estonia was one of the first jurisdictions in the EU to legislate cryptocurrencies and many companies are now doing business there. The Baltic region is fast becoming a northern crypto-paradise with Lithuania, Latvia, and Estonia all experiencing a recent economic boom. This has made Estonia a breeding ground for new startups.

Even its neighbor Latvia, though behind Estonia in cryptocurrency adoption, is beginning to make real inroads into developing a positive input to the industry. In March 2018, Latvia hosted an international discussion between industry experts on the future of fintech in the Baltics and the overall EU, which featured the vice-president of the European Commission Valdis Dombrovskis as keynote speaker.

But it’s Estonia breaking the records at present due to a progressive approach to cryptocurrency, despite the country abandoning its plans to introduce its own cryptocurrency after being warned by President of the European Central Bank Mario Draghi earlier this year.

500 licenses have been issued to date with over 400 wallet providers also being issued permission to operate. It appears that obtaining a license to operate a platform in Estonia is relatively simple according to Nikolay Demchuk from the law firm Njord which works in the sector. As Estonia operates under EU rules, the main emphasis on obtaining accreditation is complying with local and EU rules. Businesses applying also need to prove that they can operate with adequate KYC and AML protection.

Approval only takes about two weeks and are issued by the local regulator, the Estonian Financial Intelligence Unit (FIU), but companies must begin operating within six months of receiving their licenses under the pressure of losing them.

The biggest drawback in Estonia concerns banking as there is still a reluctance among the country’s banking community to provide services to cryptocurrency exchanges. However, the e-residency program, introduced in 2014, allows non-Estonians access to Estonian services such as company formation, banking, payment processing, and taxation. The program also allows anyone in the world to apply for a digital ID card and gain access to Estonian e-services when planning to start a company in the country.

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Estonia’s Own Private Bull Run Boasts 900 Crypto Firms in Less Than a Year appeared first on BitcoinNews.com.

ECB Chief Reiterates Lack of CBDC Justification

European Central Bank (ECB) president Mario Draghi has reconfirmed to the European Parliament that there are no plans to create a central bank digital currency (CBDC).

Draghi cited a lack of any prevailing economic conditions to warrant such as step, going on to suggest that DLTs hadn’t been severely tested as yet and still required “substantial further development before they could be used in a central bank context”.

The fact that discussions around the world about CBDCs is gaining some impetus hasn’t escaped the ECB or EU financial regulators, particularly in the light of Sweden’s Riksbank considering its own e-krona due to dwindling interest in cash and a rise in the use electronic money in that country.

The ECB, at one time scathing in its condemnation digital currency, has recently demonstrated a change of its stance, even suggesting that cryptocurrencies have a place in the future. It recently suggested that the financial body should begin to “…work on exchanges and platforms which provide services at the interface between crypto-assets and the real economy”. The comments were made earlier this year by Bank of France Governor Francois Villeroy de Galhau who also sits on the ECB’s Governing Council.

Bitcoin’s rising popularity currently feeds the debate globally whether the future direction of money is electronic rather than paper. The ECB chief has suggested however that an ECB digital currency would mean that the central bank would set itself against the banking sector in such a scenario and lead to potentially substantial operational costs and risks.

A view held by some experts is that a CBDC could make quantitative easing more effective bypassing the banking sector, also as a substitute for bank deposits, strengthen the transmission of monetary policy changes to the economy. Such views assert that a CBDC need not be nearly as disruptive as the ECB maintain in its criticism of the concept.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post ECB Chief Reiterates Lack of CBDC Justification appeared first on BitcoinNews.com.

Estonian Startup Pops Up on SEC Notice Seeking $180 Million

A little-known company based in Estonia is looking to raise funds up to USD 180 million an obscure ‘GoWeb’ token sale, reports Coindesk.

The SAFT Project is a forum for the discussion of a compliant framework for token sales. Notice of the company using the fundraising sale was published through US Securities and Exchange Commission’s (SEC) EDGAR document system on 4 June.

The company, NewTech Myning OU, will become one of many blockchain startups and projects which have raised money using the SAFT model, by selling tokens with promises of the distribution at a future time. In this case, the offering is for the “sale and issuance of rights to receive GoWeb tokens in the future via a Simple Agreement for Future Tokens”.

The total of USD 180 million is significant as it would represent one of the larger recent token sales, but NewTech Myning is still a minnow in fundraising when compared to Telegram who raised USD 1.8 billion early this year, while EOS raised about USD 4 billion in a token sale over a one-year period starting in June 2017, according to MSN.

There is little information about the Estonia-based company which was only established in March, but startups are increasingly making a home in the country that has become a proactive space in the industry.

Estonia is becoming increasing crypto friendly, with its government previously linked to a national cryptocurrency project which has since been abandoned. The plan to introduce its own cryptocurrency was dumped, following the President of the European Central Bank Mario Draghi’s warning that no EU member can have its own currency apart from the Euro.

Many crypto companies are now doing business in Estonia with Lithuania, Latvia, and Estonia also experiencing an economic boom recently. Estonia’s widespread adoption of cryptocurrencies and fintech has become a breeding ground for new startups.

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

The post Estonian Startup Pops Up on SEC Notice Seeking $180 Million appeared first on BitcoinNews.com.

Estonia Says No to National Crypto After EU’s Draghi Says Hands Off

Estonia has abandoned its plan to introduce its own cryptocurrency following the President of the European Central Bank Mario Draghi’s warning that no EU member can have its own currency apart from the Euro.

Local Estonian banking institutions had also been vocal, rejecting the idea, which was proposed by the managing director of the Estonian e-residency program, Kaspar Korjus.

The e-residency program, introduced in 2014, allows non-Estonians access to Estonian services such as company formation, banking, payment processing, and taxation. The program also allows anyone in the world to apply for a digital ID card and gain access to Estonian e-services when planning to start a company in the country.

Korjus had previously suggested that the country should develop and produce the proposed Estcoin national currency which could then evolve into the country’s national cryptocurrency as part of the e-residency program.

EU Bank president Draghi had already made it clear in September 2017 saying, “no member state can introduce its own currency; the currency of the eurozone is the euro.” His original position has been further supported by Governor of the Bank of Estonia, Ardo Hansson, who complained about “misleading reports” on Estcoin from government agencies.

Siim Sikkut an official in charge of Estonia’s IT strategy made it clear that Estcoins will now need a new plan as the national currency concept has been rejected, suggesting:

“We agreed in discussions with politicians that Estcoin will proceed as a means for transactions inside the e-resident community. Other options aren’t on the table. We’re not building a new currency.”

Kaspar Korjus, the author of the Estcoin plan, says that the “community Estcoin” is still being analyzed for potential benefits, but also confirmed that it wouldn’t become a national cryptocurrency.

Estonia a country of 1.3 million has a significant internet penetration and has seen a widespread adoption of cryptocurrencies and fintech over the past few years, becoming a breeding ground for new startups. The euro became its national currency in 2011.

Follow BitcoinNews.com on Twitter at @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Image Source: Pixabay

The post Estonia Says No to National Crypto After EU’s Draghi Says Hands Off appeared first on BitcoinNews.com.