Juro

E.U. Statutes Applicable to juro

Laws and Definitions Used

All of the series of juro Digital Money are treated and defined as “money”, “capital”, or “own funds” in the following pieces of E.U. legislation:

Through this directive, the European Parliament passed legislation which clearly define what virtual currency is not, and also went further to differentiate complementary currencies, like juro Digital Money, from virtual currencies. This is significant as all recommendations to avoid, ban, and refrain from using or holding virtual currencies which the European Banking Association issued for investors, consumers, and financial institutions DO NOT APPLY to juro Digital Money. The points in section 10 and section 11 of the directive are of particular interest and have been quoted below:

(10)  Virtual currencies should not to be confused with electronic money as defined in point (2) of Article 2 of Directive 2009/110/EC of the European Parliament and of the Council (1), with the larger concept of ‘funds’ as defined in point (25) of Article 4 of Directive (EU) 2015/2366 of the European Parliament and of the Council (2), nor with monetary value stored on instruments exempted as specified in points (k) and (l) of Article 3 of Directive (EU) 2015/2366, nor with in-games currencies, that can be used exclusively within a specific game environment. Although virtual currencies can frequently be used as a means of payment, they could also be used for other purposes and find broader applications such as means of exchange, investment, store-of-value products or use in online casinos. The objective of this Directive is to cover all the potential uses of virtual currencies. 

(11)  Local currencies, also known as complementary currencies, that are used in very limited networks such as a city or a region and among a small number of users should not be considered to be virtual currencies. 

(1)  Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009, p. 7).

(2)  Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35)

point (2) of Article 2 of Directive 2009/110/EC

‘electronic money’ means electronically, including magnetically, stored monetary value as represented by a claim on the issuer which is issued on receipt of funds for the purpose of making payment transactions as defined in point 5 of Article 4 of Directive 2007/64/EC, and which is accepted by a natural or legal person other than the electronic money issuer;

point 5 of Article 4 of Directive 2007/64/EC

‘payment transaction’ means an act, initiated by the payer or on his behalf or by the payee, of placing, transferring or withdrawing funds, irrespective of any underlying obligations between the payer and the payee;

point (25) of Article 4 of Directive (EU) 2015/2366 of the European Parliament and of the Council

‘funds’ means banknotes and coins, scriptural money or electronic money as defined in point (2) of Article 2 of Directive 2009/110/EC;

point (2) of Article 2 of Directive 2009/110/EC

‘electronic money’ means electronically, including magnetically, stored monetary value as represented by a claim on the issuer which is issued on receipt of funds for the purpose of making payment transactions as defined in point 5 of Article 4 of Directive 2007/64/EC, and which is accepted by a natural or legal person other than the electronic money issuer;

points (k) and (l) of Article 3 of Directive (EU) 2015/2366

(k) services based on specific payment instruments that can be used only in a limited way, that meet one of the following conditions:

       (i) instruments allowing the holder to acquire goods or services only in the premises of the issuer or within a limited network of service providers under direct commercial agreement with a professional issuer;

       (ii) instruments which can be used only to acquire a very limited range of goods or services;

       (iii) instruments valid only in a single Member State provided at the request of an undertaking or a public sector entity and regulated by a national or regional public authority for specific social or tax purposes to acquire specific goods or services from suppliers having a commercial agreement with the issuer;

(l) payment transactions by a provider of electronic communications networks or services provided in addition to electronic communi­cations services for a subscriber to the network or service:

       (i) for purchase of digital content and voice-based services, regardless of the device used for the purchase or consumption of the digital content and charged to the related bill; or

       (ii) performed from or via an electronic device and charged to the related bill within the framework of a charitable activity or for the purchase of tickets;

provided that the value of any single payment transaction referred to in points (i) and (ii) does not exceed EUR 50 and:

              — the cumulative value of payment transactions for an individual subscriber does not exceed EUR 300 per month, or

              — where a subscriber pre-funds its account with the provider of the electronic communications network or service, the cumu­lative value of payment transactions does not exceed EUR 300 per month;”

Relevant European Central Bank Glossary Terms

The series of juro Digital Money meet the definitions of “money”, “M3”, and “base money”, as defined in the glossary of the European Central Bank.

money. An asset accepted by general consent as a medium of exchange. It may take, for example, the form of coins or banknotes or units stored on a prepaid electronic chip-card. Short-term deposits with credit institutions also serve the purposes of money. In economic theory, money performs three different functions: (1) a unit of account; (2) a means of payment; and (3) a store of value. A central bank bears the responsibility for the optimum performance of these functions and does so by ensuring that price stability is maintained.

M1.  A “narrow” monetary aggregate that comprises currency in circulation and overnight deposits.

M2.  An “intermediate” monetary aggregate that comprises M1 plus deposits with an agreed maturity of up to two years and deposits redeemable at notice of up to three months.

M3. A “broad” monetary aggregate that comprises M2 plus repurchase agreements, money market fund shares and units as well as debt securities with a maturity of up to two years.

base money (monetary base). Currency (banknotes and coins) in circulation plus the minimum reserves credit institutions are required to hold with the Eurosystem and any excess reserves they may voluntarily hold in the Eurosystem’s deposit facility, all of which are liabilities on the Eurosystem’s balance sheet. Base money is sometimes also referred to as the “monetary base”.

Posted

in

by

Cosimo Constantinos

Tags:

, , , , ,