Governments around the world are facing hard choices when it comes to cryptocurrency: overregulate it and risk losing the benefits to the economic system, or practice nothing and make themselves vulnerable to those who step up. Currently, the Eu can't figure out what to do almost Libra, the digital currency prepare to be released past Facebook in 2022.

According to a February. 19 memo released past Executive Vice-President Dombrovskis on behalf of the European Committee, the Libra Association has fallen short in its responses to questions from the Eu. Every bit a upshot, any data provided past Facebook "remains insufficient for determining the precise nature of Libra and, by extension, its relation with existing EU law."

However, Dombrovskis too stated the Commission are "willing to deed swiftly" when it comes to harnessing the potential of crypto by arranging regulations and oversight. Such a position reaffirms their Dec. 5 annunciation to police stablecoins and monitor whatsoever risk to financial stability of the region.

Regulatory Backlash to Digital Currencies in the United States

Facebook CEO Mark Zuckerberg spoke before a U.S. House of Representatives Fiscal Services Committee on October. 13 concluding year. Lawmakers echoed similar concerns as the European Commission, citing vague answers Zuckerberg provided regarding the digital currency:

"I actually don't know if Libra is going to work."

Government bodies in both the United States and the EU are working on improve agreement crypto. The Committee launched an open public consultation that will be available until March 19th, while the Internal Revenue Service in the United States is preparing for a cryptocurrency summit on March third.