Stablecoins will be treated more like an asset, than a currency: Eurorpean Central Bank...

• There has been a continuous evolution in the currency system, in and around the world, people can now make payments within seconds, with just a few clicks, on the digital platforms
• But there are a handful of risks that come hand-in-hand with the use of digital assets. Such risks can hamper the financial position and stability of a country at large. It is quite different from the one to one deposits that are carried out in banks, which have a sense of security
• The EU has also been closely trying to look into the various legislations that could be taken care off, in the field of Stablecoins

There has been a continuous evolution in the currency system, in and around the world, people can now make payments within seconds, with just a few clicks, on the digital platforms. And so has been happening in the crypto industry, which is a digital currency in itself. Stablecoins happen to be a form of digitalized assets, which have a range of prices that varies with respect to some other currencies. In the past years Stablecoins have become a steamy topic of discussion, followed by debate. Global stablecoins are like footprints, at a global level. Take the example of Libra, which is a Facebook owned stablecoin, and it works as an asset for settlement. 

But there are a handful of risks that come hand-in-hand with the use of digital assets. Such risks can hamper the financial position and stability of a country at large. It is quite different from the one to one deposits that are carried out in banks, which have a sense of security. The situation with security is completely different in the case of Stablecoins. The European Central Bank has always closely monitored the working of stablecoins, and have taken several measures to keep a check and regulate them, previously, like the PISA Framework. There has been a continuous set of regulatory steps that has been taken by the ECB, with respect to stablecoins. 

The EU has also been closely trying to look into the various legislations that could be taken care off, in the field of Stablecoins. Recently, there was a mention that Stablecoins will be treated more like an asset, than a currency, by the President of the European Central Bank. Stablecoins had been criticized by Lagarde, previously, but now she seems to treat it much more like an asset. Several investigative procedures have been carried out by the European Central Bank in the last few years, and many more are going to be carried out in future.