There’s a new analysis coming from the European Parliament Committee on Economic And Monetary Affairs claiming something that makes the whole crypto community more than happy – crypto can be used as an alternative to money.
Even if we already knew this, it’s quite reassuring to hear it from someone who has more power.
This statement was a part of an exhaustive review on how crypto works and the impact that it may eventually have on the global economy.
Crypto can be used as an alternative to money
“Digital currencies, also known as ‘virtual currencies’ or ‘cryptocurrencies’ can be defined as ‘a digital representation of value, not issued by a central bank, credit institution or e-money institution, which in some circumstances can be used as an alternative to money,” the European Parliament notes.
After explaining more details about crypto, they also say that the common feature of the digital currencies is the use of DLTs in order to manage value exchanges.
Crypto is both disruptive and innovative
The European Parliament says that crypto offers technical and operational paradigms that are a source of disruption for the industry including monetary policy and financial stability.
“All these disruptive and innovative applications utilize new and emerging technologies, among which those stand out are AI, cloud computing, biometrics, digital identity, the blockchain, cybersecurity, RegTech, internet of things (IoT), augmented reality, etc.,” the European Parliament continues.
They also continue and say and central banks may issue their very own digital currencies, and this will eventually reshape the current competition level in the intercrypto market because the number of competitors will be even higher.
A challenge for regulators
They also say that crypto is challenging for regulators explaining that “the international nature of cryptocurrency markets is also a challenge to competition policy at the European level. Many of the players operate from global locations outside the jurisdiction of European competition authorities,” and this makes investigation or prosecution on anticompetitive behaviors more difficult.
We recommend that you read the full report here.