The European Banking Federation abbreviated EBF or FBE in French that was established in 1960 and works as the voice of Europe’s banking sector in all regulatory debates at European and global level, has called for governments and businesses to develop regulatory solutions for cryptocurrencies like Bitcoin, Litecoin, Dogecoin, etc.
As the request has come from an organization that represents 32 national banking Associations in EU + EFTA countries and 4500 banks and 2.3 million employees, it has a lot of importance. Nonetheless, the EBF acts as a forum, where members’ initiatives are proposed and debated; thus, there is still some hope that the request may not win the vote of confidence.
It has also come to notice that though the EBF has asked for regulations, it is willing to listen to the voices from other segments and stakeholders. It believes that talks with banks when taken into consideration in the shaping of relevant policies could work well. Similar voices have come from several other European agencies like ECB.
The EBF, a group representing thousands of the continent’s largest banking groups, has been showing its concern and opportunities over the digital currencies and for that it recently released its vision for a digital revamp of the banking system. The draft included proposals to policymakers regarding Bitcoin and the blockchain.
Interestingly, the EBF is not against the financial technology innovation; rather, it supports technologies like blockchain. The organization in its report said that blockchain technology as an innovation that “provides a number of interesting opportunities both for financial institutions individually and for the collective ecosystem” is a revolutionary development.
Bitcoin’s Future is Unclear
However, the EBF believes that digital currency space should be regulated and for that it proposed states that Bitcoin should be regulated through the development of a comprehensive regulatory framework and the application of existing anti-money laundering statutes to digital currency transactions.
For instance, using such technology offers clear opportunities to reduce costs of moving and handling money, to secure consumer spending and to introduce greater liquidity to the market. However, the EBF dismisses the prospects of Bitcoin’s use case as a currency, calling its future “unclear”.
The EBF believes that apart from regulation, research into the technology should also be done so that the regulators know the ongoing evaluations of rule-making. Nonetheless, the document also points to some of the potential pay-offs of the technology’s wider adoption.
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