According to new EU documents, the EU plans to integrate cryptography into its cross-border payment infrastructure by 2024.

The framework to be developed will include both crypto payment integration and risk management.
With a cash prevalence rate of 78%, the EU wants to make cashless payments the “new normal” by 2024.
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The successful spread of cryptocurrencies

Two new documents from the European Union have proposed a four-year window for the inclusion of crypto assets such as Bitcoin Circuit or Ethereum in the EU’s payment infrastructure.

The documents contain plans for the EU executive to present a law to rectify all regulatory deficiencies and, if necessary, to create new rules for the introduction of cryptography in the EU.

New rules to create regulatory clarity

According to Reuters, the European Commission is particularly keen to drive crypto adoption as the pandemic lockdowns would have exposed a point of failure in the existing cash-dominated order.

To this end, the European Commission believes that the move to instant payments is now a priority.

To achieve this, according to the Reuters report, the EK will present a draft law that provides for a comprehensive set of rules for distributed ledger technology (DLT). The bill will also close crypto regulatory loopholes in EU law – where they may exist.

An excerpt from the document cited by Reuters reads:

“By 2024, the EU should create a comprehensive framework that enables the introduction of distributed ledger technology and crypto assets in the financial sector. It should also look at the risks associated with these technologies. By 2024, the principle of the “passport” and “one-stop-shop licensing” should apply in all areas that hold great potential for digital finance. “

European growth targets for digital payments

The report mentions that the EC intends to integrate the new set of rules into its existing EU-wide framework „Same risk, same rules, same regulation“. In this way, according to the report, customers should have instant access to digital instant payment solutions within four years once the anti-money laundering and know-your-customer checks are completed.

As part of the crypto regulatory program, the report said, the EC will also monitor customers‘ transaction costs to ensure they are no higher than those of regular wire transfers.

It is worth remembering that at the beginning of 2020 a consortium of 16 European banks announced a partnership for a self-developed European payment system that should be operational by 2022.

This system should offer an alternative to the American giants VISA and Mastercard.