Joint statement of the EU Commission and the EU Council on stablecoins
The European Union Commission and the EU council issued a joint statement on stablecoins. Stablecoin is a term for digital currency that is backed by commodity or other currency in order to maintain price stability. Stablecoins are in focus of regulators worldwide after the announcement of Facebook’s lead consortium “The Libra Association”, on building stablecoin cryptocurrency Libra. The EU Commission and Council stressed the importance of innovation in the financial sector, but underlined the cautious approach that needs to be taken. Statement is calling for the coordinated global response regarding the stablecoins that can reach the global acceptance, targeting the Libra proposal. The Council and Commission reiterated statement from the G7 financial group on stablecoins, that such project needs to be put on hold until risks and concerns are properly addressed. They stated the concerns regarding consumer protection, privacy, taxation, cyber security, money laundering, terrorism financing, market integrity, governance and legal certainty.
The EU Council and the EU Commission added: “no global “stablecoin” arrangement should begin operation in the European Union until the legal, regulatory and oversight challenges and risks have been adequately identified and addressed”