The European Central Bank (ECB) wants to have a veto over the launch of stablecoins in the euro area and a larger oversight role to reduce inflation risks and keep payments secure.
As the ECB said in a legal opinion on the rules for regulating cryptoassets in the EU, the final say on whether the launch of a stablecoin in the euro area should be allowed for the European Central Bank. This will allow the ECB to maintain control over inflation and security of payments.
“If the turnover of such assets is associated with a payment system or scheme, then the assessment of the potential threat to the conduct of monetary policy and the smooth operation of payment systems should be within the exclusive competence of the European Central Bank,” the ECB said in its conclusion.
The regulator added that the EU’s proposed rules for cryptoassets should be changed so that obtaining an opinion from the ECB on this issue is mandatory for the authorities evaluating applications for the issue of stablecoins.
The ECB said that issuers of stablecoins should be subject to “strict liquidity requirements” similar to those applied to money market funds, including the presence of significant cash reserves to help companies withstand large customer churns.
According to the regulator, firms selling stablecoins pegged to multiple currencies “should at least provide end users with the right to direct claims against the issuer or for reserve assets and repurchase rights.”
Recall that last month, the President of the European Central Bank (ECB) Christine Lagarde (Christine Lagarde) called bitcoin “an overly speculative asset” that needs regulatory oversight.
