The European Parliament’s Committee on the Internal Market and Consumer Protection (IMCP) published an Opinion on Virtual Currencies. The Opinion calls on the Committee on Economic and Monetary Affairs, as the committee responsible, to incorporate a number of suggestions into its motion for a resolution.
The Opinion, which was published on the 21st of April 2016, lays down 14 suggestions, some of which are the following:
Virtual Currency technology and its industry are innovative technologies which are still in a nascent state and which are not being developed on the basis of existing infrastructure;
It recognises the potential benefits associated with Virtual Currencies for consumers, businesses, charities and the economy at large, which include greater speed and efficiency and reduced costs in making payment and transfers;
It highlights that Virtual Currencies are the only means of payment other than cash which can facilitate real-time settlement, whereby the receiver gets 100% of funds at the time of payment.
Moreover it also stressed the importance of developing a level European playing field to allow the valuable potential of Distributed Ledger Technologies to be unleashed and fully developed in a wide range of industries and services.
Nevertheless, the IMCP also acknowledged that Virtual Currencies could present risks in relation to criminal activities and that Virtual Currencies holders are vulnerable to illegal activities and challenges.
It also acknowledges the potential risks posed to the financial system with regards Virtual Currencies which are not a national or foreign currency.
The Opinion called on the European Commission to consider the contribution of Virtual Currencies and Distributed Ledger Technologies to all sectors, including their role in the development of the digital single market, with a view to ensuring that legitimate businesses in the Virtual Currencies are allowed to thrive.
Finally, it stressed the importance of consumer awareness, transparency and trust when using Virtual Currencies and called on the European Commission to develop, in cooperation with the Member States and the Virtual Currencies industry, guidelines which guarantee the correct and clear information for existing and future Virtual Currencies users.
