EU plans to use crypto assets for economic recovery

EU plans to use crypto assets for economic recovery

EU plans to use crypto assets for economic recovery

The European Union intends to widely use crypto assets during the implementation of the recovery and economic reconstruction plan after the crisis due to the COVID-19 pandemic. “(Recovery plan) Next Generation EU gives us the opportunity to move forward as a global player in the digital sphere,” said European Commission Executive Vice President Valdis Dombrovskis on Saturday at an informal meeting of EU economic and finance ministers in Berlin.

“We want the EU financial sector to make the most of the opportunities provided by digitalization and to ensure that innovative European market players are at the forefront of global leadership,” he said. “European consumers and businesses also need to benefit from digital finance, while ensuring adequate risk mitigation.” Dombrovskis announced that he will present an “updated EU Digital Finance Strategy” later in September.

“We want to bring EU rules in line with the digital age to drive innovation while containing risks,” said the EC deputy chairman in charge of finance. “That's why we will put forward a legislative proposal on the crypto asset markets.”

He also added that some ministers at this meeting expressed concern about the risks associated with the so-called “stablecoins”, which do not comply with current EU rules. He assured that the new legislative proposals will solve these problems. The EU will regulate the risks to financial stability and monetary sovereignty associated with “stablecoins” when used for settlements.

The Next Generation EU plan, agreed in July by the EU leaders, is intended not only to restart the EU's internal market after the pandemic, but also to increase the Union's competitiveness and innovative capabilities, and help it implement the green course. A financial instrument for post-crisis recovery is being created – a fund of 750 billion euros. Brussels borrows this money from financial markets and will include it in the Union budget, which until now has been filled almost exclusively with contributions from member states.

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