EU considers launching its own version of bitcoin – The Independent

The European Union is considering the development of its own digital currency that could rival Facebook's Libra cryptocurrency.

Draft documents from the European Central bank urged the EU to come up with a consistent approach to all cryptocurrencies, which range from decentralised currencies like bitcoin, to state-backed efforts currently underway in China.

Until now, the bloc has failed to implement any significant regulationsurrounding cryptocurrencies but several European countries have implemented their own rules.

Sharing the full story, not just the headlines

"The ECB and other EU central banks could usefully explore the opportunities as well as challenges of issuing central bank digital currencies including by considering concrete steps to this effect," stated the document, which was seen by Reuters.

The draft could be discussed by finance ministers later this week, before potentially being adopted next month.

On 3 January, 2009, the genesis block of bitcoin appeared. It came less than a year after the pseudonymous creator Satoshi Nakamoto detailed the cryptocurrency in a paper titled 'Bitcoin: A peer-to-Peer Electronic Cash System'

Reuters

On 22 May, 2010, the first ever real-world bitcoin transaction took place. Lazlo Hanyecz bought two pizzas for 10,000 bitcoins the equivalent of $90 million at today's prices

Lazlo Hanyecz

Bitcoin soon gained notoriety for its use on the dark web. The Silk Road marketplace, established in 2011, was the first of hundreds of sites to offer illegal drugs and services in exchange for bitcoin

On 29 October, 2013, the first ever bitcoin ATM was installed in a coffee shop in Vancouver, Canada. The machine allowed people to exchange bitcoins for cash

REUTERS/Dimitris Michalakis

The world's biggest bitcoin exchange, MtGox, filed for bankruptcy in February 2014 after losing almost 750,000 of its customers bitcoins. At the time, this was around 7 per cent of all bitcoins and the market inevitably crashed

Getty Images

In 2015, Australian police raided the home of Craig Wright after the entrepreneur claimed he was Satoshi Nakamoto. He later rescinded the claim

Getty Images

On 1 August, 2017, an unresolvable dispute within the bitcoin community saw the network split. The fork of bitcoin's underlying blockchain technology spawned a new cryptocurrency: Bitcoin cash

REUTERS

Towards the end of 2017, the price of bitcoin surged to almost $20,000. This represented a 1,300 per cent increase from its price at the start of the year

Reuters

On 3 January, 2009, the genesis block of bitcoin appeared. It came less than a year after the pseudonymous creator Satoshi Nakamoto detailed the cryptocurrency in a paper titled 'Bitcoin: A peer-to-Peer Electronic Cash System'

Reuters

On 22 May, 2010, the first ever real-world bitcoin transaction took place. Lazlo Hanyecz bought two pizzas for 10,000 bitcoins the equivalent of $90 million at today's prices

Lazlo Hanyecz

Bitcoin soon gained notoriety for its use on the dark web. The Silk Road marketplace, established in 2011, was the first of hundreds of sites to offer illegal drugs and services in exchange for bitcoin

On 29 October, 2013, the first ever bitcoin ATM was installed in a coffee shop in Vancouver, Canada. The machine allowed people to exchange bitcoins for cash

REUTERS/Dimitris Michalakis

The world's biggest bitcoin exchange, MtGox, filed for bankruptcy in February 2014 after losing almost 750,000 of its customers bitcoins. At the time, this was around 7 per cent of all bitcoins and the market inevitably crashed

Getty Images

In 2015, Australian police raided the home of Craig Wright after the entrepreneur claimed he was Satoshi Nakamoto. He later rescinded the claim

Getty Images

On 1 August, 2017, an unresolvable dispute within the bitcoin community saw the network split. The fork of bitcoin's underlying blockchain technology spawned a new cryptocurrency: Bitcoin cash

REUTERS

Towards the end of 2017, the price of bitcoin surged to almost $20,000. This represented a 1,300 per cent increase from its price at the start of the year

Reuters

Facebook announced earlier this year that it plans to launch its Libra cryptocurrency at some point next year. It is designed to allow people to make and receive payments through Facebook-owned apps like Instagram, Messenger and WhatsApp, which are used by billions of people around the world.

Since its unveiling, however, Libra has faced significant resistance from financial regulators in the US and Europe. In September, French economy and finance minister Bruno Le Mairesaid that he would block the development of Libra and France as it posed a threat to "monetary sovereignty".

Politicians in the UK have expressed similar reservations, with Digital, Culture, Media and Sport Committee Chair Damian Collins claiming that Libra represents Facebook's attempt to "turn itself into its own country".

Several of the payments firms that Facebook worked with in the early stages of Libra's development, such as Mastercard and Visa, also recently dropped out.

In China, plans for a state-backed cryptocurrency appear to be moving forward as the country's central bank prepares for a launch expected in the coming months.

Last week, President Xi Jinping hailed bitcoin's underlying blockchain technology as an "important breakthrough", marking an about-turn in the country's official stance on cryptocurrency.

All negative sentiment towards the technology also appears to have been purged from Chinese social media, with cryptocurrency news resource CNLedgernoting that "articles saying blockchain technology is a scam are now banned".

A new law coming in to effect on 1 January will also serve to facilitate "the development of the cryptography business and ensuring the security of cyberspace and information".

Read the original post:

EU considers launching its own version of bitcoin - The Independent