Bank of Lithuania calls for parity in EU digitalisation
The Bank of Lithuania has called on the European Commission (EC) to ensure regulatory equivalence across the continent as financial services continue to digitise.
The central bank responded to an EC call for consultation on the development of digitised financial services across the EU.
It argues that the bloc must overcome “the fragmentation arising from divergent national regulations.”
Marius Jurgilas, board member at the Bank of Lithuania, believes Europe can “take up the leading international role” for fintech through a unified approach.
EU members treat financial innovation differently across both regulatory and supervisory aspects.
“Financial innovations often emerge and grow faster than the regulatory framework adapts,” says the central bank.
“It is important to find an appropriate solution, one that does not slow down progress and is proportionate to the risks involved.”
The Bank of Lithuania suggests a wider adoption of new solutions. It also wants the creation of a register of trusted providers which member states can draw from.
Virtual currencies and assets are a particular highlight for the central bank. It says the EU needs a clear definition for the technology to enable proper regulation.