ECB Wants to Be Able to Veto Stablecoins Like Diem in the EU

23/02/2021 by No Comments

The European Central Bank (ECB) is seeking the power to veto launches of stablecoins in the eurozone.

  • The European Union laid out plans to create a comprehensive framework on rules around digital assets in September.
  • The ECB now believes it should have the final say ahead of any proposed stablecoin launches, such as the Facebook-backed diem (formerly libra), Reuters reported Tuesday.
  • According to the ECB, such stablecoin issuers should meet “rigorous liquidity requirements” on cash reserves similar to money market funds.
  • The assessment of the risk that stablecoins pose to financial stability in the eurozone should “fall within the exclusive competence of the ECB,” the central bank said in an opinion dated Feb. 19.
  • The ECB is currently investigating the possible development of a digital euro, aiming to completed the project in no more than five years.

See also: Digital Euro Will ‘Protect’ Eurozone From Foreign Issuers, Says ECB Exec

ECB Wants to Be Able to Veto Stablecoins Like Diem in the EU
European Central Bank, Frankfurt, Germany
(Angelina Dimitrova/Shutterstock)

The ECB believes it should have the final say ahead of any proposed stablecoin launches.