The European Commission is currently considering whether to legislate to regulate trade using virtual currencies such as Bitcoin, its vice president Valdis Dombrovskis said on Monday. Europe must live with the time, but also pay attention to risks, he said.
Virtual currencies, the best known of which is Bitcoin, are increasingly popular with investors and the general public. However, the use of these currencies in international trade is not without risk. Their value is not guaranteed, which leads to particularly intense speculation.
Used for illegal purposes
Moreover, cryptocurrencies are popular in some circles that conduct illegal activities. They can be used for money laundering purposes or to fund actions that violate the law. Cases of fraud against virtual currencies have also been raised several times by US authorities.
The Commission was organizing a conference on Monday – bringing together industry representatives and experts – on the future of these currencies. These, of course, have merit, Dombrovskis stressed, stressing the importance for Europe to take this innovation into account in order to remain competitive.
Protecting the consumer
The risks involved should not, however, be neglected. “Europe is only a small part of the international cryptocurrency market, so we need to work with our G20 partners” to protect consumers, said the vice president of the EU executive.
The latter concluded by stating that the Commission did not rule out making a legislative proposal on these currencies.