That sounds a little dramatic. I'm all for nation states being less powerful and intrusive, but at the same time, stablecoins are a ticking timebomb that will only get worse if something isn't done to make them less shady. How many more scams do you really want to encourage? Literally anyone can claim that their new token is backed by fiat, but if they're lying, the token is worthless. It's a modern day alternative to counterfeiting. You don't even have to make the effort to make illegal copies of banknotes, you just create a crypto token and say it represents money that doesn't even exist.
Did I say anything that isn't true?
I know it's not always pure doom and gloom but how do you think they're going to determine which coin is good or bad? They'll ask everyone to apply for licenses and get money from it while having them all submit before their authority.
I don't like stablecoins but the EU is trying to regulate something they don't understand.
Nothing good is going to come out of this.
It's a difficult balancing act. They have to do something, but clearly they can't please everyone. I'm not going to pretend I have all the answers, but they've highlighted an area that does need some attention. Once we know exactly what form the regulations will take, then we can make an informed judgement as to how draconian it is.
