ECB wants final say on the legal status of private stablecoins in the EU

ECB wants final say on the legal status of private stablecoins in the EU


The European Central Bank has finally sent its formal opinion on crypto regulations to the European Commission.

According to Reuters, the ECB has asked EU lawmakers for veto powers concerning private stablecoin projects like the Facebook-backed Diem. An excerpt from the ECB opinion document reads:

“Where an asset-reference arrangement is tantamount to a payment system or scheme, the assessment of the potential threat to the conduct of monetary policy, and to the smooth operation of payment systems, should fall within the exclusive competence of the ECB.”

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As part of the demand for veto powers on stablecoins, the ECB has urged the EU to ensure that its ruling should be binding on all national authorities in the Euro Zone. According to the ECB, stablecoin issuers must comply with the same robust liquidity requirements as banks and other mainstream financial institutions.

For the ECB, some “rigorous liquidity requirements” are necessary to ensure the protection of redemption rights and customers’ direct

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