Central banks should veto large stablecoins if they have fears they could upend monetary policy, the chair of the European Banking Authority (EBA) has said, citing fears that the use of permissionless blockchains could prove financially unsound.
EBA Chairperson José Manuel Campa will in the coming months be setting out the detailed rules to implement the European Union’s Markets in Crypto Assets regulation (MiCA), a landmark framework that will require stablecoin issuers to gain a license and hold suitable reserves.
“Central banks should have the power to veto the widespread introduction of so-called stablecoins” if they affect public policy goals, including financial stability or monetary policy, Campa said at
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