MacManus urges “maximum caution” on digital currencies

Sinn Féin MEP Chris MacManus has said the EU and Ireland should approach the issue of digital currencies with “maximum caution” and has urged users of the currencies to be extremely careful.

MacManus, who is a member of the Parliament’s Financial Technology (FinTech) Working Group was speaking after voting on a Parliament report which supported a cautious approach to the issue of digital currencies and “crypto assets”.

The Midlands Northwest MEP said:

“I welcome the overall cautious tone adopted by the Committee in its report today. So called “crypto assets” are very new and from what we know of them are a potential aid to illegality and a tool in creating further inequality.”

“Australian research has shown that 46% of all Bitcoin transactions were linked to illegality and that the primary legal use was pure speculation. The question must be asked – who benefits from these shadowy digital currencies?”

The Sligo native concluded: “National and EU authorities must be resourced and empowered to monitor, regulate and, where necessary, police these crypto assets. The use of so called “Stable coins” by Facebook and others is a new innovation which must be kept under a close eye too. There may of course be benefits to digital currencies but for now ordinary citizens and taxpayers must be protected as the priority. That means beefing up national and EU level competencies and cooperation.” ENDS