Council of the European Union has issued a report, according to which the EU decision-maker will ban all stablecoins until all of the risks related to them and concerns are properly addressed.
The EU Will Block Libra if Necessary
According to the Council, stablecoin-related risks should be subject to clear and proportionate regulatory and oversight frameworks, established on a sound evidence base and based on general principles and applicable to all stablecoin arrangements.
"There is a need to ensure legal clarity about the status of stablecoin arrangements. Some recent projects of global dimension have provided insufficient information on how precisely they intend to manage risks and operate their business," the report states.
Moreover, the Council highlights that the emergence of stablecoin initiatives triggers the importance of improvements related to the current payment arrangements "in order to meet market and consumer expectations.
" Earlier iHodl reported that the central bank of France is planning to carry out experiments with its own digital currency.