EU vs Stablecoins: Ban or Control?
06 December 2019 12:57, UTC
No global stablecoin project is to operate in the European Union until the risks to monetary sovereignty are excluded. A joint statement by the Council of the European Union and the European Commission (EC) states that stable coins can be effective in providing cheap and quick payments, but they have much more risks and problems. The statement was approved by the Economic and Financial Council (ECOFIN). EU authorities outlined numerous risks and problems associated with stablecoins:
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“These arrangements pose multifaceted challenges and risks related for example to consumer protection, privacy, taxation, cyber security and operational resilience, money laundering, terrorism financing, market integrity, governance and legal certainty. [..] These concerns are likely to be amplified and new potential risks to monetary sovereignty, monetary policy, the safety and efficiency of payment systems, financial stability, and fair competition can arise.”Solving the problems associated with global stablecoins requires a coordinated effort by world jurisdictions, authorities noted. Moreover, organizations that plan to issue stable coins in the EU must urgently provide complete and adequate information so that a proper assessment can be made taking into account the applicable existing rules, the statement says:
“No global ‘stablecoin’ arrangement should begin operation in the European Union until the legal, regulatory and oversight challenges and risks have been adequately identified and addressed.”
At the same time, EU authorities noted that they welcomed the initiatives of central banks working to assess the costs and benefits of the central bank digital currencies (CBDC) and leading developments that provide quick and inexpensive cross-border payments. Recall that recently the Central Bank of Germany and France were actively conducting research in the field of blockchain and digital assets. Just recently, the head of the Bank of France, Francois Villeroy de GALHAU, announced that the Bank of France was beginning to conduct “experiments” with digital assets as soon as possible
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It is not yet clear whether the statement regarding stablecoins will in any way influence the further development of events or will become the basis for legal obligations. Bitnewstoday will follow developments.
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