Over the next four years, the European Union intends to introduce new rules that will accelerate and reduce the cost of cross-border payments by using blockades and cryptographic assets, such as cryptocurrencies backed by traditional assets. According to the source, this is mentioned in two new EU documents.
The European Commission will outline its strategy to encourage greater use of digital finance. Now 78% of settlements in the euro zone are made in the form of cash payments. The European Commission is also interested in a rapid transition to “instant” payments in general, as the blockages associated with the pandemic have shown the growing role of non-cash payments.
The documents say that instant payment systems should become the “new norm” by the end of 2021. They are suitable for many purposes, as are traditional card payments, particularly for physical and online purchases, which are now dominated by card schemes. The commission will assess the impact of fees charged to consumers for instant payments and may require that they not exceed those charged for card payments.
The documents also state that the EU executive will present a draft law clarifying how the existing rules apply to the handling of crypto assets and will establish new rules to fill in the gaps in the existing ones.
In addition, Brussels wants to simplify data exchange in the financial sector to stimulate competition and expand services.