A European Union commissioner plans to hold a meeting of public and private sector stakeholders to discuss the impact of cryptocurrencies on central banks.
In remarks at a press conference for the Economic and Financial Affairs Council (ECOFIN) on Tuesday, Valdis Dombrovskis, the Vice President for the Euro and Social Dialogue, said he plans to discuss the issue with a group of as-yet-to-be-named officials and representatives from the private sector. Dombrovskis was quoted as saying:
“Cryptocurrencies may have ramifications for many other areas, including for central banks. That’s why I intend to bring together key authorities and the private sector in a high level roundtable very shortly to assess the longer term situation beyond the current market trends.”
Several countries have or are conducting research on the idea of a central bank-issued digital currency, including central banks from U.K., India and Canada.
However, the potential involvement of central banks in cryptocurrencies has been received with mixed reactions. While some predict that central banks will buy cryptocurrencies to shore up their foreign reserves, others argue that the objectives of bankers and cryptocurrency buyers are too disparate for central banks to involve themselves beyond regulatory actions.
While it remains to be seen where such discussions would go, Dombrovskis’ role in EU structural reform and financial market regulation signals that those talks could lead to further regulatory action.
During the presser, Dombrovskis reiterated the EU’s interest in adopting blockchain technology, as well as its intention to take on a more aggressive regulatory approach to cryptocurrencies to curb “unlawful behavior.”
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