In the last few months, one of the most popular topics across the cryptoverse and in the financial world is the possibility of various countries and regions developing their own national digital tokens. This has already been done in countries like Venezuela and it is reported that China, the Bahamas, and Canada are looking into their own national digital tokens for reasons stemming from relief during a disaster or to simply boost in the local economy. At the same time, not everyone is sold on the idea of countries and regions needing their own digital tokens and even with the upcoming Libra token by Facebook, the debate continues to linger.
According to November 5, 2019 reports, a new draft document that has been issued by the European Union urges member states to develop their own cryptocurrencies as well as avoid high-risk projects.
This document urges member nations to have a united approach towards cryptocurrency and should it be approved in its current form, it could have consequences in the next few months and could become the basis for regulatory action being brought against cryptocurrency in EU member states. The suggestion of the European Central Bank developing its own digital token was also brought up, this time by this Finnish EU presidency.
“The ECB and other EU central banks could usefully explore the opportunities as well as challenges of issuing central bank digital currencies including by considering concrete steps to this effect,” the document says.
The document will be formally discussed on November 8, 2019 and the possibility of its adoption will be discussed on December 5, 2019 and from there we will know if the European Central Bank is looking towards its own cryptocurrency and what the attitude of member states will be towards crypto. This could end up being quite complicated as many countries such as France are already quite pro-blockchain and crypto and this could prevent a united action against cryptocurrency because of certain member states.
At the same time, it is encouraging that the topic of cryptocurrency has become important enough to warrant it mentioned in the document as important as this and also to be discussed at the European Union and regardless of whether the European Central Bank launches a digital token or not, it speaks to their level of awareness the cryptocurrency has at this point in time.