The European Union is still trying to explore solutions for Libra, according to a memorandum released on Tuesday by Executive Vice President of the European Commission Valdis Dombrovskis.
The indecisiveness stems from the lack of action information. Specifically, Libra lacks detailed instructions, according to Dombrovskis.
Despite repeatedly asking the Libra Association launched by Facebook for information about the payment ecosystem and the same name as stablecoin, the Commission – the executive branch of the EU – has yet to determine exactly, What is Libra?
Because Libra is still a project, and therefore a moving target, the information provided is still insufficient to determine the exact nature of Libra, by extension, its relationship with Current EU law.
However, the Commission wants to “act quickly”, in creating regulations for Libra, stablecoins and other EU crypto asset projects. This reaffirms to the Commission on December 5, 2019, announcing that it will control stablecoins and “risks” of financial stability.
Libra faced a backlash following regulations announced last year, lawmakers and agencies around the world calling for a halt to development until the project is led by Facebook. may be scrutinized.
Facebook CEO Mark Zuckerberg said the Libra Association, which established its own board of directors with 20 companies in mid-October, will wait until the regulatory authorities relax the law before issuing it.
In a testimony to the US congressional committee last year Zuckerberg said that Facebook would withdraw from the project if the Association launched before obtaining regulatory approval.