EU plans to issue public digital currency

Late evening of November 5th, Beijing time, foreign media reported that according to a draft document of the European Union, the European Central Bank (ECB) should consider issuing a public digital currency.

The move was inspired by Facebook’s Libra project, which was announced in June and is expected to be launched next year, but was met with hostile responses from regulators around the world.

In addition, the draft document also urges the EU to develop new rules regarding digital cryptocurrency assets and stablecoins, including a ban on high-risk projects.

The draft bill, which is likely to be adopted by EU finance ministers at a meeting next month, would in its current form escalate the EU’s regulatory action against cryptocurrencies, which have so far been only partially regulated in some EU countries.

“The ECB and other EU central banks could explore the opportunities and challenges of issuing central bank digital currencies, including considering specific measures to this end,” the draft said.

Digital currencies like Libra, also known as "stablecoins," are often backed by traditional currencies and other securities, compared with digital cryptocurrencies such as Bitcoin.

According to the meeting agenda, EU finance ministers may discuss the draft this Friday so that it can be passed at the next meeting on December 5, the report said.