EU Parliament: Cryptocurrencies “will remain with us for a while”

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A new report on cryptocurrencies was released by the European Parliament. It tells lawmakers not to “ban” or “ignore” them, predicting that they “will remain with us for a while.”.

The report entitled “Virtual currencies and central banks monetary policy: challenges ahead” by the Economic and Monetary Affairs Committee, is supportive of “VC’s” (Virtual Currencies) and the technology behind them.

The document’s abstract describes cryptocurrencies as “a contemporary form of private money”, which “Thanks to their technological properties, their global transaction networks are relatively safe, transparent, and fast.”.

“This gives them good prospects for further development. However, they remain unlikely to challenge the dominant position of sovereign currencies and central banks, especially those in major currency areas. As with other innovations, virtual currencies pose a challenge to financial regulators, in particular because of their anonymity and trans-border character.”

A positive stance

The document shows a positive stance towards the cryptocurrencies by the European Parliament, explaining that “VCs respond to real market demand and, most likely, will remain with us for a while.”

It also calls for “harmonised” regulations across the block:

“In most cases, transactions in VCs result from the free business choices of economic agents and, therefore, should be treated by regulators as any other financial transaction or instrument—that is, proportionally to their market importance, complexity, and associated risks. Given their global, trans-border character, it is recommended that regulations concerning VCs be harmonised across jurisdictions (which is far from the case now). Investment in VCs should be taxed similarly to investment in other financial assets.”

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