Europe's ECON Committee Study Shows Banks View Bitcoin As Competition In FinTech

Banks Could Be Engaging in Misconducts In Order to Take Advantage and Keep Users from Bitcoin

According to a report published by the European Parliament Committee on Economic and Monetary Affairs (ECON), there are some competition issues in the banking and cryptocurrency sectors.

The ECON is in charge of overseeing decisions made by the European Central Bank (ECB). This time, the Police Department for Economic, Scientific, and Quality of Life Policies, uploaded a document in which they analysed major competition issues in the fintech area.

The market is now facing important challenges that are related to banking, forex, insurance and cryptocurrencies.

One of the main points marked in the document is related to what it calls as ‘the value chain of cryptocurrencies,’ that is related to different crypto areas, including mining, platforms, smart contracts and more.

Before explaining the different issues of each area, the document describes how each of them works. It makes a differentiation between cryptos and e-money, which is a key different in the crypto world. Digital currencies are based on a decentralized peer-to-peer structure, while e-money works as a conventional agreement between parties.

Furthermore, they made an important distinction related to different blockchains. For example, there are open networks and permissioned blockchains. Some of them are used between enterprises while others used among private actors.

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