Friday, September 13, 2019

"Spooked by Facebook's Libra, euro zone to step up work on public cryptocurrency"

Just as with seigniorage, governments consider that issuing crypto falls within their purview to mint money.
Next up, some guy in Frankfurt, Strasbourg, or Brussels will be telling us that "no, really, droit du seigneur existed" (it didn't) and said right should devolve to him and his ECB or EU or E.P. brethren.
Or something.
Rant over*, here's Reuters:
Euro zone governments and central banks are working on a long-term plan to launch a public digital currency that they hope would make redundant projects like Facebook’s Libra, which is seen as a risk to financial stability, officials said on Friday.

The 19-country bloc is also united in pursuing a tough regulatory approach should Libra seek authorizations to operate in Europe. It is also considering a common set of rules for virtual currencies, which are currently largely unregulated.

The currency union has worked in past years on several plans to make digital payments cheaper and faster, but none of them has properly taken off so far.

But plans unveiled in June by U.S. social media giant Facebook to launch its own digital currency, Libra, for payments among its hundreds of millions of users in Europe and around the world have triggered a rethink.

Libra was “a wake-up call”, European Central Bank (ECB) board member Benoit Coeure told a news conference in Helsinki after a meeting of euro zone finance ministers.
He said Libra had revived efforts to widen the uptake of an ECB-backed project for real-time payments in the euro zone, known as TIPS. The project, launched last year, has been met with caution by banks.

“We also need to step up our thinking on a central bank digital currency,” he added, unveiling a so-far little known plan....
....MUCH MORE

*Not quite over. I just flashed on 2008's "European Politicians Think They are Rulers; Need Energy Wasting Palace":
When MEP's dream, are they Capetian or Carolingian?
Capetian, methinks.
I've always liked the Carolingians better,
they seemed more human-

Charles II, the Bald
Louis II, the Stammerer
Charles, the Fat
Charles III, the Simple
Along the lines of the Brit's Aethelred II, the Unready
(my fav. royal nickname)

Anyhoo.... 
I really do have a low opinion of the EUrocrats.