Reuters: EU internal document proposes regulations within four years to promote cross-border payments in cryptocurrencies

Reuters reported on Friday that two internal EU documents indicate that the EU will introduce new regulations to make cross-border payments faster and cheaper by 2024 using blockchain and cryptocurrencies.

Real-Time Payment System Expected to Become Normal in 2021

According to reports, the new framework should allow new users to quickly access financial services after confirming anti-money laundering risks and identity verification. Financial institutions should also find it easier to share data to promote competition and more services.

The EU also hopes to boost digital financial services, stating that the EU's business passporting rights and one-stop shop (OSS) should also be introduced in highly digital potential areas.

Note 1: Passporting refers to financial regulatory standards where companies, once granted a passport, can conduct business activities without further permission.

Note 2: OSS, one-stop shop, an organization established by the EU, will assist in implementing groundbreaking and promising technologies, mainly providing financing tools.

The EU further states that "real-time payments" should become the norm in 2021. They believe this surpasses traditional credit payments and has more suitable applications, especially in physical and online shopping. The EU Parliament will also evaluate new payment methods to avoid additional costs for users.

While real-time electronic payments are common in China, they are still considered new technology in Europe. In democratic countries that pay relatively more attention to privacy and fair competition, there are inevitably more issues to be resolved.

Furthermore, the EU's openness to digital assets and blockchain will likely drive regulatory clearance for Libra, with many developments still worth anticipating.