“They should not be allowed in the EU until legal, regulatory and supervisory difficulties have been addressed”
Germany, France, Italy, Spain and the Netherlands voiced support for the European Commission’s goal of creating a regulatory framework for cryptocurrencies linked to assets such as stablecoins, according to a draft joint communiqué accessed by Reuters.
Stablecoins should not be allowed in the European Union until legal, regulatory and supervisory difficulties have been addressed, the five countries said. Stablecoins, a type of cryptocurrency linked to conventional assets, found on the agendas of policymakers last year that Facebook unveiled its plans for the Libra digital currency.
Central banks and financial regulators fear Libra could destabilise monetary policy, facilitate money laundering and limit user privacy. Some have threatened to block it, and this plan has since been delayed and reshaped.
According to the draft communication, the European regulatory framework for stablecoins should maintain the monetary integrity of the bloc and address risks to monetary policy, while protecting consumers.