Europe's recovery plan: crypto assets to help the economy


The COVID-19 pandemic has shaken and damaged health systems and economies in Europe and around the world. At the end of May this year, the European Commission presented its proposals for a recovery plan, according to which the full potential of the EU budget will be used. It is necessary to use this measure to protect lives and livelihoods, regulate the single market and ensure sustainable recovery.

An informal meeting of the EU economy and finance ministers was held in Berlin last Saturday, at which the Executive Deputy Chairman of the European Commission, Valdis Dombrovskis announced the readiness of the EU government to use crypto assets in the implementation of the recovery and economic transformation plan. He also added that the EU financial sector should make the most of the opportunities offered by digitalization, and investors should take a global dominant position. All European consumers and industries should benefit from the digital currency, which will help minimize risks.

On the other hand, the updated EU digital Finance Strategy is expected to be announced in the second half of September. The strategy aims to adjust EU regulations to the digital age, which is necessary to promote innovation and contain risks. Therefore, a legislative proposal regarding the crypto asset market is expected. However, some ministers at the Berlin meeting were also concerned about the risks associated with "stablecoins" that do not comply with current EU rules, but Dombrovskis assured that the new legislative project should solve this problem. The European Union should minimize risks when calculating with stablecoins.

In July, the Next Generation EU or "Next Generation of Europe" was agreed by EU leaders and aimed to restart the EU's internal market after the pandemic. Moreover, this plan is intended to increase competitiveness and innovative opportunities, as well as to promote the implementation of the "green course" of the EU countries. This is a kind of financial instrument for post-crisis reconstruction, with a fund of 750 billion euros. Brussels will acquire this money on the financial markets and include it in the Union budget, which previously consisted exclusively of contributions from EU member States.

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