EU Parliament Reviews Cryptocurrencies, Asserts They Are Alternative to Money

Wed, 07/25/2018 - 09:26
Darryn Pollock
The EU Parliament has asserted that cryptocurrencies can be used as an alternative to money as a new analysis delves deep into categorizing the assets
EU Parliament Reviews Cryptocurrencies, Asserts They Are Alternative to Money
Cover image via U.Today

new analysis from the European Parliament Committee on Economic and Monetary Affairs has delved into the nature and scope of cryptocurrencies and made some pretty positive calls on their impact in a European setting.

One of the major assertions from the committee is that cryptocurrencies, in their opinion, can indeed be used as an alternative money.

Additionally, the analysis has come to the conclusion that cryptocurrencies are also disruptive, but innovative at the same time, spelling more positivity. Finally, looking inwards, the analysis conquered that there is potential for central banks to issue their own digital currencies, as well as the fact that regulators need to step in and step up.

A new money alternative

The way in which the committee for the EU has broken down cryptocurrencies and their impact to a union such as the European one gives a lot of insight as to how these assets may be regulated in the future across Europe.

“Digital currencies, also known as ‘virtual currencies’ or ‘cryptocurrencies’ can be defined as ‘a digital representation of value, not issued by a central bank, credit institution or e-money institution, which in some circumstances can be used as an alternative to money,” this was the way in which the committee began its analysis of cryptocurrencies.  

By asserting that digital currencies can be used as an alternative to money it is clear that the EU does not see them as a threat to the monetary and central banking system. It also means that they are looking to them as a potential future monetary system.

Central Banks joining in

In fact, the committee also arrived at the conclusion that, like other nations are starting to discover, the central banks can also start issuing their own digital currencies.

“The arrival of permissioned cryptocurrencies promoted by banks, even by central banks, will reshape the current competition level in the inter-cryptocurrency market, broadening the number of competitors. A potential inadequacy of traditional competition policy to address competition issues in the cryptocurrency markets can be found, suggesting direct public participation through a central-bank digital currency as a remedy,” the report read.

Change in the air

The way in which the regulators have started to look deeper into cryptocurrencies and understand their value and potential over their dangers is indicative of a changing viewpoint of these decentralized assets.

Entities like the EU and the G20 are starting to mull over ways in which to regulate cryptocurrencies and, compared to a few months ago, the attitude is changing to be far more balanced and positive.

About the author

Darryn Pollock is an award winning  journalist from Durban, South Africa. He picked up Vodacom’s Regional Sports Journalist Award in 2017 while expanding his Blockchain and cryptocurrency reach.  He is a contributor to Forbes, Cointelegraph, Binary District, and of course, U.Today. Darryn’s belief is that Blockchain technology will be the driving force of the next technological wave and it is the obligation of journalists and writers to tell its emerging story with integrity and pride.