ESMA would have the power to supervise public offerings of cryptocurrencies directly. The application of the AMF proposal would involve using the practice of ESMA for the regulation of cryptocurrencies.

The Financial Markets Authority (AMF) of France proposes a single authority to regulate cryptocurrencies in the European Union.

The European Securities and Markets Authority (ESMA) submits this proposal published in a document. They based the text on the responses to a consultation that the European Union conducted. They recently released the work under the title: “More European supervision and better regulation are key elements to build a true Capital Markets Union.”

ESMA supervises the European markets, seeking to improve the functioning of financial markets and promote cooperation between members of the economic bloc.

The text says that ESMA would directly supervise the Public Offerings of Crypto Assets in the EU and cryptocurrency service providers. Furthermore, it explains that this would create scale economies for national supervisors and concentrate technical know-how efficiently to benefit Europe.

The publication also recommends reducing the aspirations of the nations of the European Union in this regard. That will make it possible to agree on a single regulatory framework that ESMA manages and that allows it to receive the powers.

The document also addresses the governance of ESMA, whose revision it considers necessary to allow a more European decision-making dimension. Likewise, it explains that national authorities constitute the current management framework of the financial system supervisor in the European Union. That limits decision-making to a broader scope, which is a matter of credibility for the European authority.

The AMF believes it is necessary to strengthen the role of the Board of Directors and the independence of ESMA. That would facilitate the making of the different decisions in this environment.

Furthermore, the ESMA administrative structure and source of funding must remain closely linked to its management. In other words, members with less vote will not have as strict a financial obligation as those with higher decision-making power.

It also considers it essential to ensure sufficient flexibility so that ESMA can quickly adjust to the evolution and external finances of the market. It also seeks to adapt to new important projects to adequately fulfill its mission and face the increase in supervisory powers.

On the Way to Complement a Single Regulation

The document also notes the need to complement a single regulation that requires simplifying procedures in Europe and streamlining financial regulation. In this way, there will be greater efficiency in the single market and the competitiveness of the European Union in the world market.

In this regard, it adds that the Commission should systematize choosing regulations instead of directives in the future. That is particularly relevant when they involve financial products that benefit from a European passport.

The text says that efficient European supervision is essential for the capital markets union. They must put it into practice together with the establishment of a single effective regulation. The document indicates that this has not had the expected results through the attempts in legislative matters.

In 2020, the European Commission proposed creating a supervisory agency for cryptocurrencies, which would take effect at the end of that year. That project aimed at creating a team of supervisors with national authorities and EU agencies. The European Banking Authority (EBA) would chair that group and control the cryptocurrency sector in the region.

By Alexander Salazar

The politician questioned the intermediation of banks and their role in the finances of Chile. He revealed that the Chilean Central Bank has debated how it could issue a digital peso.

Former Chilean senator and current constituent Felipe Harboe recently spoke about the role of banks in the economy. He said that these institutions have unfairly criminalized cryptocurrencies, as they seek to be the only intermediaries between citizens and the possibility of investing.

The politician from the Party for Democracy (PPD) stressed that Chile must stop using the business logic of the 90s if it wants to develop faster. Harboe believes that it must become a center for digital instruments in which cryptocurrencies play a crucial role.

He does not believe that digitization happens just because someone is a bank customer. He noted that the costs associated with international bank transfers are enormous, as well as slow. He told Jazmín Jorquera, the operations manager of Buda.com, that it does not make any sense.

Harboe stated that the massification of cryptocurrencies is possible in a globalized and free world. The lawyer also explained that digitization is not just paying with credit cards or making transfers through the Internet. He said that each person must take care of their finances with digital tools, dispensing with intermediaries.

The constituent cited Mexico, with the implementation of the FinTech Law, and El Salvador, with the adoption of Bitcoin as legal tender. Regarding the Central American country, the politician said that its decision was daring but that there are still doubts about its impact on its economic development.

The Central Bank of Chile Debates on How to Issue the Digital Peso

One of the things the former senator revealed was that the Central Bank of Chile has debated how it could issue a digital peso. However, Harboe did not give details about his meetings or what the progress has been.

He explained that many countries would start to get involved with that type of currencies, just like China did with its digital yuan. Among those he mentioned are the advances that the United States and the European Union are making.

Chile would have to meet some conditions to issue a digital peso, said Harboe. It must have a digital regulatory system including data protection, draft a FinTech law, diversify digital payment methods, and promote platforms for new business models.

Additionally, the South American country must expand the areas of technological coverage. In other words, it must have an infrastructure allowing them to connect to the Internet even in the most remote part of the territory.

The representative to Congress believes that all Chilean ministries should promote digital development. Each agency must have programs to apply new solutions without a new digital department to regulate the sector.

The legislator has spoken with other representatives to Congress about a possible regulation on private cryptocurrencies such as Monero and Zcash. The debate has allowed them to define the path to take to regulate this type of crypto asset. The politician defends not only cryptocurrencies but also blockchain technology.

By Alexander Salazar

Mastercard joined efforts with Circle to test USDC as a bridge to bring more simplicity to conversions between fiat and cryptocurrency. The ultimate goal is to make it easier for companies to manage Mastercard cryptocurrency cards.

The renowned global payments company, Mastercard, has chosen its first stable coin and has joined efforts with a group of companies to carry out plans to incorporate cryptocurrencies into its payments services.

Circle, the blockchain company that operates the stable coin USDC, announced Tuesday a partnership with Mastercard for consumers and businesses worldwide to take advantage of USDC in payments and transactions. Specifically, the alliance intends to facilitate conversions between crypto and fiat currency by applying Circle’s stable coin as a bridge asset.

USDC is Bridge for Crypto-Fiat Conversions

While including a stablecoin in the crypto-fiat conversion process may look like an extra step, adding USDC can make the process faster. Currently, card issuers must deal with the high costs of switching between crypto and fiat when settling a transaction.

Dhamodharan, Executive Vice President of Digital Assets, and Blockchain Products at Mastercard explained that not all companies count on the fundamental infrastructure to transform cryptocurrency into traditional fiat currency.

On many exchange platforms, some cryptocurrencies can be traded more easily by stablecoin than by fiat currency. The ultimate goal is for the USDC trial to help expand the crypto card service, allowing more companies to have the ability to offer their customers the option of spending digital currencies between merchants that accept Mastercard around the world.

Mastercard had already carried out plans in February to allow merchants the possibility of receiving payments with cryptocurrencies by the end of this year. Dhamodharan had already hinted that stablecoins would be a step towards that ultimate goal.

Mastercard is already conducting  plans regarding cryptocurrencies

According to a CoinDesk report, the stable coin testing program led by the payments giant also includes partnering with a handful of companies. Apart from Circle, Evolve Bank & Trust and Paxos Trust Co. are also involved in the pilot, although their roles are unclear.

Mastercard announced that it is currently in conversations with Evolve and Metropolitan Commercial Bank to start issuing cryptocurrency cards. Likewise, the company’s spokesperson, Katie Priebe, clarified that USDC would be the only stable coin involved in the program. She added that the pilot should be ready soon, although a specific date is yet unclear.

The company is also talking with cryptocurrency startups Uphold and BitPay to bring digital wallet technology. There are conversations with three firms from the traditional card business to manage more back-end functions.

Mastercard is not the only company in the payments sector measuring the potential of stablecoins for transactions. Its main rival, Visa, also signed an alliance with Circle last year to help the company unlock “fast and cheap payments.”

By: Jenson Nuñez