Today in TechREG, two senior central bankers criticized crypto assets and the disruption they could bring to the international financial system if left unregulated. A member of the ECB’s executive board also highlighted the benefits of a digital euro. In addition, European lawmakers will discuss on Tuesday May 17 the last amendments to the proposed consumer credit directive which could be approved before the summer holidays.
EU Regulators Crack Down on Stablecoins While Boosting CBDCs
Governor of the Bank of France Francois Villeroy de Galhau told a conference in Paris that more regulation was needed and that crypto assets should be consistently and appropriately interoperable across jurisdictions.
The second official to discuss this issue was Fabio Panetta, member of the Executive Board of the European Central Bank and responsible for the development of a central bank digital currency for Europe. Panetta previously warned of the risks associated with crypto assets. During his speech in Dublin on Monday May 16, he also warned that stablecoins are vulnerable to runs.
But Panetta’s speech was not so much about critiquing crypto assets as promoting the benefits of a digital euro and the complementarity of public and private money to ensure stability, competition and innovation.
New EU consumer credit rules could be approved by summer
A committee of the European Parliament will vote in June on the proposal for a consumer credit directive (CCD) with the aim of obtaining final approval in plenary session before the summer break. Lawmakers will discuss proposed amendments to the text on Tuesday, May 17.
The existing CCD dates from 2008 and, although it introduced a number of consumer benefits, it does not include many new lending initiatives widely used by consumers, such as buy now, pay later ( BNPL), payday loans or short-term overdraft facilities. .
The Commission’s proposal aims to respond to these technological developments by broadening its scope, introducing pricing rules for certain credits, clarifying information requirements and revising creditworthiness assessments.
OCC encourages banks to explore AI solutions for RegTech
Kevin Greenfield, assistant comptroller for operational risk policy at the Office of the Comptroller of the Currency (OCC), explained at a public hearing hosted by the House Committee on Financial Services Friday, May 13, what the agency does to oversee and assist banks that use AI tools to facilitate regulatory compliance, commonly referred to as RegTech.
Greenfield said the agency supports national banks and federal savings associations exploring safe and healthy uses of AI.
Meeting of the EU-US Council on Trade and Technology
On Monday 16 May, the EU and the US reaffirmed their close cooperation to address global trade and technology challenges.
The ministerial meeting agreed to work together with Ukraine to rebuild its economy. The co-chairs will also work on different areas such as information integrity, trade and social dialogue, export control, supply chain security, technology standards, artificial intelligence and platform governance.