EU planning to launch its own digital currency

• The European Union is developing its cryptocurrency that could rival Facebook’s upcoming Libra.
• China is also planning to launch a state-backed digital currency.

The European Union (EU) is considering to launch its own digital currency as opposed to Facebook’s Libra cryptocurrency. Draft documents from the European Central Bank has urged the EU to come up with a consistent approach to all the cryptocurrencies. This includes decentralized currencies such as Bitcoin and state-backed efforts currently underway in China. 

So far, the bloc has not been able to implement any noteworthy regulation concerning cryptocurrencies, but multiple European countries have come up with their own rules. 

The document, which was seen by Reuters, said:

The ECB and other EU central banks could usefully explore the opportunities as well as challenges of issuing central bank digital currencies, including by considering concrete steps to this effect.

The draft is expected to be discussed by the finance ministers this month before being potentially implemented next month. Earlier this year, Facebook announced its plans to launch Libra cryptocurrency sometime next year. Ever since it has received resistance from regulators in the US and Europe. In September, the French economy and finance minister, Bruno Le Maire stated that he would block Libra as it posed a threat to "monetary sovereignty."

Many payment companies that Facebook worked with during the initial stages of Libra’s development, like Mastercard and Visa, have also recently dropped out. Moreover, China is also headed towards launching a state-backed cryptocurrency. The central bank is preparing for a launch that is expected to take place in the coming months.