The European Commission proposed a strategy of encouraging use of cryptocurrency at a time when 78% of payments in paper money
According to Reuters, the European Union (EU) plans to incorporate cryptocurrency and blockchain technology into its main processes by 2024.
EU to introduce cryptocurrency regime by 2024, EU documents say
Over the next four years, the EU will aim to consolidate new regulations that will promote the use of cryptocurrencies and Blockchain for international money transfers.
The documents detailed:
“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. It should also address the risks associated with these technologies.”
It seems that almost 80% of the European population is transacting with paper money, so the EU wanted to see digital payments become more common while aiming for instant transaction times.
The committee’s reported goals include a desire to increase access to data and financial operations – all aimed at increasing efficiency.
“By 2024, the principle of passporting and a one-stop-shop licensing should apply in all areas which hold strong potential for digital finance.”
In the coming year, fast trade routes are likely to continue.
While the COVID-19 pandemic may have spurred the global desire for digital payments, Blockchain assets and cryptocurrencies have become the gossip of the governing town, with many countries heading towards central bank digital currencies to streamline their payment infrastructure.
Instant payments are suitable for many uses beyond traditional credit transfers, in particular for physical and online purchases, which are currently dominated by payment card schemes, the documents said. Europe has long sought home grown alternatives to the likes of MasterCard and Visa, the U.S. payments firms heavily used in the region.
The Commission will assess the impact of charges levied on consumers for instant payments and to could require that they are no higher than those for regular credit transfers.
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