According to a new report of the Committee on economic and monetary Affairs (ECON) of the European Parliament, the issue of crypto-currencies by Central banks (CBDC) may increase competition in the stock market, and to destroy her by strangling her traditional tokens.

In the report “competition Issues in the financial technology space (FinTech)”, published by ECON, which forms the framework decision for the European Central Bank (ECB), said:

“Issue resolved cryptocurrency banks, including the Central, will change the current level of competition in the cryptocurrency market, expanding the number of competitors.”

“However, the market power of banks in traditional banking services can be used to restrict competition in the cryptocurrency market through pre-emptive acquisitions or predatory pricing schemes”.

The paper noted that although the competition in the cryptocurrency market grows (in March 2015, the volume of BTC in its total capitalization was 82% in March 2017 72%), it is still assessed as insufficient. As noted by ECON, the problems for competition in this sphere are complex actions for market entry, network effects, and “the platform nature of cryptocurrencies”.

In addition, the report mentioned the lack of competition in the industry of cryptocurrency mining. In this case, the European regulators, the problem is complicated by the fact that the industry’s major players are out of their jurisdiction, said ECON.

However, in the opinion of the Committee of the European Parliament, the release of the digital currency the Central Bank will help to solve the problems of regulating competition in the stock market:

“The potential inadequacy of the traditional policies to address problems of competition in the cryptocurrency markets can be overcome through the direct involvement of society through CBDC as a remedy”.

We will remind, earlier the Deputy Governor of the Central Bank of Italy Fabio Panetta (Panetta Fabio) said that Central banks are not ready to release CBDC. But analysts of the Bank for international settlements (BIS) warned that digital currencies Central banks can threaten global financial stability.