Show two documents European Union The European Union will introduce new rules within four years to make cross-border payments faster and cheaper through the use of technology assets (blockchain) and crypto assets, such as: stablecoins.
The European Commission is set to lay out its strategy to encourage greater use of digital finance at a time when 78 percent of payments in the eurozone are in cash. It also wants a rapid shift to “instant” payments in general, as epidemic closures demonstrate the increasing role of cashless payments.
The documents said: The executive in the European Union will present a bill to clarify how the current rules are applied to crypto assets and to establish new rules where there are gaps.
The documents stated: “By 2024, the European Union must put in place a comprehensive framework that enables to accommodate the technology of distributed ledger and cryptocurrency assets in the financial sector.” “It should also address the risks associated with these technologies,” she added.
Stable currencies – a type of cryptocurrency often supported by traditional assets – jumped to policymakers’ agendas last year when Facebook unveiled plans for a cryptocurrency called Libra. Central banks are now studying the possibility of launching their own currencies.
The documents stated that Brussels also wants to facilitate the exchange of data within the financial sector to encourage competition and a wider range of services, while adhering to the principle of “the same risks, the same rules, and the same regulation.”
She added that the conglomerate should have rules in place within four years to allow new clients to start using financial services quickly once the anti-money laundering operations and identity verification are completed.
“By 2024, the principle of a passport and a one-stop license should be applied in all areas that have strong digital finance potential,” the documents said. Pay-as-you-go systems should become the “new normal” by the end of 2021.
The documents also said that instant payments are suitable for many uses other than traditional credit transfers, particularly for purchases made in real or online, which are currently dominated by payment card schemes.
Europe has long sought “home-made” alternatives to the likes of MasterCard and Visa, the two American payment companies that are widely used in the region.
The committee will assess the impact of fees charged to consumers for immediate payments and may request that they be no higher than those for regular credit transfers.