December 10, 2023

Stablecoins in the eurozone are now illegal

Stablecoins in the eurozone are now illegal

EU finance ministers have joined forces to prevent stablecoins like Facebook's Libra from gettingdistribution in Europe until all legal issues are resolved.

In a joint statement of the European Council and the European Commission, published on December 5, it is noted: 

No global stable currency projecthas the right to start acting in the European Union until the associated legal, regulatory and supervisory problems and risks are properly identified and addressed.

From the point of view of financiers, the initiative“stablecoin” could reach a global scale and provoke new potential risks for “monetary sovereignty, monetary policy, security and efficiency of payment systems and financial stability”.

According to the regulator, the Council and the Commission are readyact quickly and collaborate with the ECB and with national and European supervisory authorities to develop a common approach to crypto assets, including “stable coins”.

The European Union categorically does not accept the Libra projectand from calls for the creation of an alternative public cryptocurrency of the European space, he turned to actions. France announced yesterday that it was testing its digital currency (CBDC) in 2020.