The European Union has plans to regulate Stablecoins but not issue their own.
The international organization is making a draft declaration concerning the regulation of Stablecoins. According to a Reuters source, the commendation is for the EU to regulate Stablecoins specifically.
Even though the draft declaration, which was published online Wednesday evening, does not have any recommendations for the EU issue its own stablecoin, it does, however, leave the door open for the ECB and other central banks to “assess the costs and benefits of central bank digital currencies.”
Another source says that issuing its own cryptocurrency is a likely option, and the declaration advises it “should be explored” by the EU.
It is first aiming to better know how to control cryptocurrency.
The source stated, “This is a rather short declaration that is about the EU position on how to handle those new types of cryptocurrencies.”
“The focus is on how those cryptocurrencies should be regulated.”
The declaration is being made following Libra, the new Stablecoin project led by Facebook. In spite of doubts regarding the Stablecoin, Libra has made progress till now.
The source said,
“There’s absolutely no commitment at this stage to put in place a new cryptocurrency.” Adding,
“The statement is to highlight the need for a proper regulatory framework for those stablecoins and as a consequence, different ideas should be explored. One of them is the possibility of having something that is managed by the ECB [European Central Bank] and other central banks.”
However, there is no clarity yet on what the final statement would be. The final version of the declaration is to be presented to the EU finance ministers by November 8 and is hoped to be adopted by the organization December 5.