EC’s Soft Tone On Foreign Stablecoins Sparks Optimism

The main executive body of the European Union captivated the soft access to the Stablecoins and contrasted with the access of the European Central Bank (ECB) and the sparkling optimism of industry.

In response to ECB concerns about potential banking risks originating in Stablecoin Multi-confirmed in Europe and third countries, the European Commission (EC) stated that such risks are “very unlikely”.

The Commission spokesman said to Coint -General: “Even in a very unlikely event running on the token together, they would occur primarily in jurisdictions, such as the US, where most tokens circulate and most reserves are held.”

The Commission’s attitude towards Multi-Stablecoin’s Multi in the EU and elsewhere has significant consequences for this industry, which, according to local industrial observers, refers to the main victory.

ECB warned against bank risks in April

Brussels softening access to foreign stablecoins contrasts with previous ECB warnings that Published Nepaper in April at the EU and Multi-Osunci Stablecoin third countries.

“The EU and third-country multi-state system would significantly weaken the EU caution for electronic money issuers (EMT) by increasing the likelihood of running, since EU publishers may not have sufficient reserve assets under the EU supervision to fulfill EU applications.”

The ECB also warned that joint issuance of stablecoins with third countries could undermine financial stability by weakening the EU consumer and bypass Markets in the regulation of crypto-aspat (mica).

Related: Digital euro, not mica, key to crypto risk management: Bank of Italy Chief

It may also allow foreign issuers to falsely require compliance with EU levels, to move regulatory liability against EU bodies without proper supervision, and open the door to companies outside the EU to access the unified market without the fulfillment of EU standards.

Brussels says the risks are manageable

After addressing warning the ECB Commission in June released In -depth analysis of the consequences of jointly publishing stable with third countries in a post called “Stablecoins and Digital Euro: Friends or enemies of European Monetary Policy?”

“We have found that there are significant institutional and regulatory obstacles in the euro area for wider adoption of foreign Stablecoins,” the Commission said in its study, adding that SIDA regulation “discouraged from large foreign publishers from registration in Europe”.

Specifically, the Commission referred to Tether, issuer USDT (USDT), the largest stablecoin in the world according to the market capitalization that refused to observe the mica For reasons, including the requirement to leave at least 60% of their reserves in European banks.

Related: Coinbase ensures the license of the mica, appoints Luxembourg as the EU headquarters

According to the Commission, the risks of joint issuing stablecoins with third countries are adminisable with existing policies, as issuers may be required to have a balance mechanism to ensure that reserves compared to EU tokens in the EU.

“Very positive news and even relief”

According to Juan Ignacio Ibañez, a member of the Micic Crypto Alliance, the Commission’s approach to the joint edition of Stablecoin with other countries means that the Office will not force issuers such as Circle to functionally distinguish between USDC-US and USDC-EU.

“These players are global entities issuing Stablecoin in and abroad,” said Ibañez Coint -General, adding that the Commission effectively advocates the proof of local and internationally issued coins and to hold the offspring of coins issued by another entity.

“That’s very positive news and even relief,” Ibañez said. “The main component of the Stablecoin value consists in its cross -border usability, which will inherit Stablecoins from the blockchain technology itself. The enforcement of jurisdictory forces would undermine this basic feature and worsen the EU user experience,” he added.

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