ECB President Calls To Address Risks From Non-EU Stablecoins

Christine Lagarde, President of the European Central Bank (ECB), requires that politicians in the European Union to deal with the stablecoins regulation, especially for those issued outside the “robust” markets in the crypt Aspathch (Mica) in the European Union.

In prepared notes on the ninth annual conference of the European Council for System Risk on Wednesday Lagardesaid EU legislators should take steps in situations where an entity covered under SIDA and an entity outside the EU together issues stablecoins.

She added that these issuers of stablecoin should not be allowed to operate in the EU unless the sources were “robust regimens of equivalence”, including EU investors “always applying their shares in nominal value” and require publishers to fully support their coins.

“In the case of running, investors would naturally prefer redemption in jurisdiction with the strongest guarantees, which will probably be the EU where Micar also prohibits redemption fees,” Lagarde said. “However, reserves in the EU may not be enough to satisfy such concentrated demand.”

Stablecoin is a cryptocurrency designed to maintain a stable value by connecting to an asset like an US dollar or euro.

https://www.youtube.com/watch?v=ry9mi57pbjs

The ECB push -ups have has explored the potential introduction of Digital euros for years, but could be under the pressure of the laws and regulations of stablecoins promoted by Trump administration in the US.

Congress in July approved the law Establishment of the Stablecoins Framework, probably beneficial emitters of coins from the US.

Related: EU Explore Ethereum, Solana to Start Digital Euro: FT

“[The US government’s policies] It could potentially lead not only with other losses of fees and data, but also in the euro deposits that have been moved to the United States and to further strengthen the dollar role in cross -border payments, ” said Member of the ECB Executive Board Piero Cipollone in April.

USA, EU and China are competing for the Stablecoin market?

In the middle of the law to be implemented in US and EU politicians, it is considering the best way forward to addressing Stablecoins in China can also look for For a coin supported by Yuan.

August News suggested that the Chinese government He considered Stablecoin tied to his Renminbi currency after slow introduction of digital Juan. Since Monday, officials have not confirmed whether the country would strengthen the role of the dollar in response to the US effort.