The EU’s main executives have taken a gentle approach to stablecoins, in stark contrast to the European Central Bank (ECB) and the trigger for industry optimism.
Respond to ECB’s concerns about potential bank operation risks Stablecoin The European Commission (EC) frequent problems in Europe and third countries say this risk is “extremely impossible”.
“Even if it is extremely unlikely that a joint issuance of tokens will be held for election, foreign holders will be redeemed primarily in jurisdictions such as the United States, where most token circulation and most reserves are held,” a spokesperson for the committee told Cointelegraph.
According to local industry observers, the commission’s stance on stablecoin Duostone in the EU and elsewhere has had a significant impact on the industry, marking a major victory.
ECB warns of bank operation risks in April
Brussels’ softening method of foreign stability is in stark contrast to previous warnings from the ECB, which is a warning from the ECB publishing April’s non-paper stable plurality in the EU and third countries.
“An EU and third country stablecoin multi-issuance scheme would significantly weaken the EU’s nursing regime for electronic money token (EMT) issues by increasing the likelihood of a run as EU issues may not have enough reserve assets under the supervision of EU authorities to fulfill redemption requests by both EU and non-EU token holders,” the ECB wrote.
The ECB also warned that joint stable issuance with third countries could bypass safeguards for EU consumers and bypass safeguards for EU consumers, and bypass safeguards for EU consumers. Crypto Asset Management Market (MICA).
Related: Digital Euro instead of mica, key to managing crypto risks: Italian Bank Chief
This could also allow foreign issuers to falsely demand EU-level compliance, transfer regulatory responsibility to EU authorities without proper supervision, and open doors for non-EU companies to access individual markets without EU standards.
Brussels says these risks are manageable
The committee in June after talking about the ECB’s warning release An in-depth analysis of the meaning of co-issuance with a third country, titled “Stablecoins and Digital Euro: Friends or Enemies of European Monetary Policy?”
“We found wider adoption of foreign stability in the euro zone and regulatory barriers,” the committee said in the study.
The Committee specifically mentions the issuer of USDT, Tether (USDT), the world’s largest stablecoin calculated by market value Refusing to comply with Mima For reasons including the requirement to retain at least 60% of the reserves at European banks.
Related: Coinbase obtains mica license to call Luxembourg the EU headquarters
According to the Commission, the risk of joint stability with third countries is governed by existing policies, as issuers may need to have rebalancing mechanisms to ensure reserves in reserves in the EU in the EU.
“Very positive news, even a relief”
According to Juan Ignacio Ibañez, secretary general of the Mica Crypto Alliance, the stable approach to co-issuance with other countries means that the authorities will not force issuers like Circle to distinguish between USDC-US and USDC-EU in functional terms.
“These participants are entities that issue stable issues in the EU and abroad,” Ibañez told Cointelegraph, adding that the commission effectively advocates timely treatment of local and internationally issued coins and allows one entity to maintain coins issued by other entities.
“It’s very positive news, even a relief,” Ibañez said. He added: “The main component of stable value lies in its cross-border availability, which is inherited from the blockchain technology itself. Enforcing jurisdictional silos will undermine this fundamental feature and reduce user experience within the EU.”
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