European Union official pledges action on stablecoins after calls for new curbs

[desticy]

A senior official for the European Union's executive branch said Saturday that concerns among the bloc's finance ministers about stablecoins will be addressed in future legislation.

On Friday, finance ministers from major EU members like Germany and France called for heightened restrictions on stablecoin activities in the region. The next day, during a press conference, European Commission executive vice president Valdis Dombrovskis sought to assuage such concerns.

"Some ministers yesterday expressed some concerns about the risks of so-called stablecoins currently outside our rules. Rest assured that our legislative proposals will address those concerns comprehensively," he remarked, according to a published copy of his remarks. "We will regulate the risks for financiSome ministers yesterday expressed some concerns about the risks of so-called stablecoins currently outside our rules. Rest assured that our legislative proposals will address those concerns comprehensively. We will regulate the risks for financial stability and monetary sovereignty linked to so-called ‘stablecoins' used for payments purposes.al stability and monetary sovereignty linked to so-called ‘stablecoins' used for payments purposes."

At the same time, Dombrovskis advocated for a "proportionate" policy response.

"But we want to be proportionate: crypto assets provide many opportunities, and we want to regulate innovation in, not out," he said.

https://www.theblockcrypto.com/linked/77633/eu-stablecoins-regulation

[livingfree]

They have to check it until it passes under their constitution.

Most governments do have to look at it for many reviews before they pass it. They can't simply pass something that they don't understand. But IIRC, they're already developing something as CBDC.

That might the reason why they have heightened alert for stable coins.

[btc_angela]

They have to check it until it passes under their constitution.

Most governments do have to look at it for many reviews before they pass it. They can't simply pass something that they don't understand. But IIRC, they're already developing something as CBDC.

That might the reason why they have heightened alert for stable coins.

I agree, every government now is looking to create their own CBDC, and with the recent pandemic, it accelerate the need to developed and released it to the public as a response to contactless payment. So obviously, this is one reason they are asking for a strict and drastic action on stable coin. On the other hand, ECB's Lagarde has confirmed that the Covid-19 has accelerated digitalisation in her speech here, https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp200910~31e6ae9835.en.html#footnote.1.

[livingfree]

They have to check it until it passes under their constitution.

Most governments do have to look at it for many reviews before they pass it. They can't simply pass something that they don't understand. But IIRC, they're already developing something as CBDC.

That might the reason why they have heightened alert for stable coins.

I agree, every government now is looking to create their own CBDC, and with the recent pandemic, it accelerate the need to developed and released it to the public as a response to contactless payment. So obviously, this is one reason they are asking for a strict and drastic action on stable coin. On the other hand, ECB's Lagarde has confirmed that the Covid-19 has accelerated digitalisation in her speech here, https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp200910~31e6ae9835.en.html#footnote.1.

True with that. Because of the possible tranmission of the virus with cash, they have to resort with something like this quickly. Although before the covid19 outbreak, there were plans already for CBDC to be made.

But this time, they have to expedite it.

[semobo]

Stable coins might got their approval already from the government on which coin it was backed up by, and how they are going to regulate it? Auditing th reserves for the tokens they are printing and floating the market or just simply going to ask for taxes.

[wanted sliter]

It seems they see the future of blockchain as a solution to economic governance problems. If Europe succeeds and becomes the model, then other countries or organizations in the region will follow, which is a ripple effect. I think their stable coins will take a long time to create and circulate. I am wondering which Crypto technology they will choose on the market to cater to their innovations and what is the cost of transferring money per transaction?

[Yaunfitda]

It seems they see the future of blockchain as a solution to economic governance problems. If Europe succeeds and becomes the model, then other countries or organizations in the region will follow, which is a ripple effect. I think their stable coins will take a long time to create and circulate. I am wondering which Crypto technology they will choose on the market to cater to their innovations and what is the cost of transferring money per transaction?

I think it's very easy to create a stable coins, but the problem is implementation and user's acceptance, unless there is really an incentives for people to get a stable coins created by their country, then it won't be recognised or it might take some time to be accepted. They will used their own private blockchain here no doubt and only government officials can have access to it. If it crypto back by government then it used by 1:1 to their local fiat.

[Zeehaxan]

I am confident that the final European Union policy will be pro-crypto because they are the people that truly support innovation and technology, the regulations will be only to protect the investors and stop the scammers.

[Killrbit]

A senior official for the European Union's executive branch said Saturday that concerns among the bloc's finance ministers about stablecoins will be addressed in future legislation.

On Friday, finance ministers from major EU members like Germany and France called for heightened restrictions on stablecoin activities in the region. The next day, during a press conference, European Commission executive vice president Valdis Dombrovskis sought to assuage such concerns.

"Some ministers yesterday expressed some concerns about the risks of so-called stablecoins currently outside our rules. Rest assured that our legislative proposals will address those concerns comprehensively," he remarked, according to a published copy of his remarks. "We will regulate the risks for financiSome ministers yesterday expressed some concerns about the risks of so-called stablecoins currently outside our rules. Rest assured that our legislative proposals will address those concerns comprehensively. We will regulate the risks for financial stability and monetary sovereignty linked to so-called ‘stablecoins' used for payments purposes.al stability and monetary sovereignty linked to so-called ‘stablecoins' used for payments purposes."

At the same time, Dombrovskis advocated for a "proportionate" policy response.

"But we want to be proportionate: crypto assets provide many opportunities, and we want to regulate innovation in, not out," he said.

https://www.theblockcrypto.com/linked/77633/eu-stablecoins-regulation

I think it is inevitable that we will see some regulation here, and once the EU passes such regulation you could expect many other countries passing their own regulations soon. Currently the biggest stable coin is Tether( leaving aside all the issues/possible printing etc since that is another topic all together) simply based on the purported volumes of their daily transactions  of 40-60 billion a day i dont see ahow a government would not look into regulating that. And again this is not a bad thing as long as the nature and goal of the regulation is not mean to be punitive or arbitrary. Furthermore Given the amount of deposits supposedly held by stablecoins we will all rest easy with some regulations/safe checks on to ensure the safety of customer funds

[justdimin]

I would totally understand if they went hard on the stablecoins because lets face it crypto currency is a whole new thing and they could be more careful about that but stable coins are basically a way to move around money very easily, from one nation to another nation, without ever investing into anything, you could literally turn black money into washed money all thanks to stablecoins.

This is why I highly suggest that all the governments in the world should be going hard into regulations for stablecoins, I personally do not like them but I also feel like there is ab ig chance people could use it for bad purposes and it doesn't serve anything neither, crypto has a meaning, tether doesn't have any at all then just allowing exchanges to have fake fiat.

[Twinkledoe]

I would totally understand if they went hard on the stablecoins because lets face it crypto currency is a whole new thing and they could be more careful about that but stable coins are basically a way to move around money very easily, from one nation to another nation, without ever investing into anything, you could literally turn black money into washed money all thanks to stablecoins.

This is why I highly suggest that all the governments in the world should be going hard into regulations for stablecoins, I personally do not like them but I also feel like there is ab ig chance people could use it for bad purposes and it doesn't serve anything neither, crypto has a meaning, tether doesn't have any at all then just allowing exchanges to have fake fiat.

Regulation is just right thing to do with these stablecoins. At least have some sort of control over laundering money or other related to it. I am with this as well. And with the regulation, people will also trust more on these cryptocurrencies as the government has certain control on this.

[aesma]

OP, check your quote, it's a bit mangled.

This is all because of Libra, peeps. USDT and the like aren't on the radar of the EU commission (yet), but Libra, with Facebook being a very large, powerful company, already used to sway elections, that's another story.

In a way it's funny that authorities are looking at regulating stablecoins because they're linked in one way or another to fiat currencies, and not at other crypto assets.

[wanted sliter]

It seems they see the future of blockchain as a solution to economic governance problems. If Europe succeeds and becomes the model, then other countries or organizations in the region will follow, which is a ripple effect. I think their stable coins will take a long time to create and circulate. I am wondering which Crypto technology they will choose on the market to cater to their innovations and what is the cost of transferring money per transaction?

I think it's very easy to create a stable coins, but the problem is implementation and user's acceptance, unless there is really an incentives for people to get a stable coins created by their country, then it won't be recognised or it might take some time to be accepted. They will used their own private blockchain here no doubt and only government officials can have access to it. If it crypto back by government then it used by 1:1 to their local fiat.

In my opinion, it's still just the euro but digitized, and the euro and the digital currency function the same way. They will stop issuing euro banknotes to use more euro cryptocurrencies. I believe that the problem of using this currency in Europe will be easier because many European countries are developed and easily accepted. After all, non-cash payments are a trend all over the world.

[kindbtc]

European Union has been pro-crypto because it was one of the first region in the world registering, regulating, taxing and encouraging crypto at all levels so i am sure this regulation will also help boost crypto.