Finance ministers from five European nations are telling to the EU Commission to proceed regulation for stablecoins and also sanctions for providers that break the laws.
According to Reuter’s ministers from Germany, France, Italy, Spain, and the Netherlands said to the Commission that stablecoins regulation is required to defend users and maintain the bloc's monetary sovereignty from Big Tech firms.
In a shared announcement, ministers told private stablecoin providers are required to adhere to European regulation and shouldn’t be permitted to work in the bloc if they fall under a certain standard said ministers at the Bundesbank Conference Friday.
Although not specified by the name, ministers may be pointing to the Facebook-backed libra coin. Also, the French and German governments have already stated they were denied to private companies launching currencies that could test the euro.
One such measure would mandate stablecoins all be asset-backed 1:1 with the euro and different member state currencies and that must be contained in European Union-approved organizations.
The second suggestion might be stablecoin providers required to register as a European entity.
The economic chief of the EU told in June that the bloc was planning for a new cryptocurrency regime that would involve more difficult conditions for worldwide stablecoin providers.
The head of the French central bank told the EU was too reliant on Big Tech on earlier Friday. If it’s unchallenged, these private companies could shut out governments and central banks from owning any monetary role in their own nations.
Christine Lagarde who is the head of the European Central Bank (ECB) told also at the same conference that the EU had fallen behind digital asset development globally.
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