Europe prepares to hold public hearing on virtual currencies

Rage Comment : The People's Bank of China has just announced that it is studying the feasibility of issuing digital currency. Coincidentally, the European Central Bank is currently studying the possibility of issuing a digital currency based on the euro. Other central banks, including the Bank of England and the Federal Reserve, are also doing similar things. For central banks, blockchain is popular with them for its transparency, low cost and better supervision. EU countries have always held a relatively open attitude towards digital currency, so we believe that this hearing may be the beginning of a series of related actions in Europe.

Translation: Height difference signal is full

The European Parliament’s Economic and Monetary Affairs Committee (ECON) is set to hold a public hearing on virtual currencies next Monday, January 25, 2016. The European Parliament is the directly elected legislative body of the European Union, the world’s largest economy.

The hearing will discuss the pros and cons of virtual currencies, the roles of lawmakers and other public agencies, the potential risks of using encryption technology, and other topics.

The Notarial Council’s participants include representatives of the European Parliament, the Organization for Economic Cooperation and Development (OECD), academic representatives, and stakeholders from the private sector, including the European Forum on Digital Currency and Blockchain Technology (EDCAB).

CoinTelegraph spoke to Sian Jones, founder of EDCAB and one of three private sector stakeholders attending Monday’s hearing, to get some background on the public hearing and what it hopes to achieve.

CoinTelegraph: What results do global cryptocurrency enthusiasts expect from this notarization meeting?

Sian Jones: I doubt this hearing will have an immediate impact. The deliberation process takes time, and we will most likely have to wait for many months before we see the published report. It will certainly take months, if not years, to see the long-term results. I hope that European lawmakers will continue their careful assessment and excellent risk management, while encouraging innovation and supporting the digital economy.

CT : Recently, the People’s Bank of China announced the development of digital currency. Do you think Europe will consider formulating similar plans to issue centralized virtual currencies?

SJ: It’s no secret that the European Central Bank is looking into the possibility of issuing a digital currency based on the euro. Other central banks, including the Bank of England and the Federal Reserve, are also doing similar things.

CT : When influential organizations such as the European Union and the International Monetary Fund ( IMF ) begin discussing virtual currencies, do you think it will increase public trust in existing cryptocurrencies?

SJ: All active discussions and debates among policymakers, legislators, national and international organizations will help virtual currencies integrate into mainstream finance, add appropriate security protections, and thus increase public trust and confidence in it.

CT : The European Parliament’s notarial session was to discuss the role that legislators, public institutions, need to play. Do governments or legislatures really have a role in cryptocurrencies? Isn’t the removal of central institutions part of the definition of cryptocurrencies from the outset?

SJ: Everything we do in our lives, including business activities, must be subject to the law. Regardless of the philosophy behind the creation of cryptocurrencies, it is unrealistic to think that policymakers, legislators, regulators, and law enforcement have neglected their responsibilities for public policy (e.g., anti-money laundering, counter-terrorist financing), consumer protection, prudential regulation, and financial and price stability.

CT : What is the attitude of the people and governments in the European Union towards virtual currencies, especially Bitcoin? How likely is it that they will change their views after this hearing?

SJ: The public hearing is one of the steps taken by the European Parliament's Economic and Monetary Affairs Committee to prepare its report. We need to wait for the final report to conclude or make recommendations. The final result may involve the legislature or the report may just suggest "wait and see". It will take time for public opinion to change.

CT : Do you have any additional comments about this hearing and its impact on the cryptocurrency industry?

SJ: European policymakers and legislators have taken a cautious and well-balanced approach to the impact of innovation, taking both the advantages and the risks into account. In the long run, their approach will bring good results for European citizens and European businesses.