The European Union needs a joint approach to so-called crypto currency and comes up with legislation to regulate it. Intended first Vice-President Valdis Dombrovskis (Economy) announced this on Tuesday during his hearing in the European Parliament.

It was already known in the summer that the EU competition authorities are investigating possible distortions of competition caused by Facebook’s digital currency libra. New financial technologies have enormous potential, according to Dombrovskis, but do entail risks in terms of competition, cyber security and financial stability.

The Latvian politician, who had also been an EU Commissioner for the past five years, stressed the importance of innovation in smaller European companies. They now often have difficulty finding financing. He announced that he would come forward with proposals for a new fund to help small and medium-sized businesses go to the stock exchange to raise capital.