Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: Galaxy on September 12, 2020, 07:39:25 PM
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Finance ministers from five European countries have called on the EU Commission to issue regulation for stablecoins as well as sanctions for providers that break the rules.
Ministers from Germany, France, Italy, Spain, and the Netherlands told the Commission that stablecoins regulation was needed to protect consumers and preserve the bloc's monetary sovereignty from Big Tech firms, according to Reuters.
In a joint statement at the Bundesbank Conference Friday, ministers said private stablecoin providers needed to adhere to European regulation and should not be allowed to operate in the bloc if they fall below a certain standard.
Info Link: https://www.coindesk.com/european-ministers-eu-ban-stablecoin-regulation
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This statement is logical and not unexpected. Stable coins are mainly used to support their activities in the national currencies of states, which means that their circulation should be subject to regulation. In principle, states will and should regulate everything that can influence the global financial system.
General rules should streamline the use of stablecoins and reduce the potential for abuse.
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It is possible that the emergence of CBDC will allow to ban any commercial stablecoins and the European Central Bank will not give digital currencies to other states or corporations the opportunity to benefit from the convenience of settlements in international trade. The central banks of Europe can simply prohibit the issuance of crypto-analogs to fiat by any private corporation.
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Are we paying so much attention to China's digital Yuan plan that we are FOMO over it? There are many risks and challenges awaiting China, and other governments can fully wait to grasp the experience and deal with the problems that may arise.
Do you think CBDC is a must in the current state of government? Are you willing to use CBDCs to benefit from the low transaction costs, while helping governments to control you harder?
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Europe is now open to cryptocurrency and indeed the ministers in Europe have to put a nice touch on this kind of regulation in the cryptocurrency market.
I cannot comment on the rules for European countries because usually there when creating rules it will be very strict and good for the good of the people, including in making rules for cryptocurrency.
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Let alone in Europe, even African countries must have the right rules for cryptocurrency.
Cryptocurrency if it wants to be on the government's financial radar, it must follow these regulations and this is for the smooth running of business.
So in my opinion these European countries are not wrong and this is more appropriate for the progress of cryptocurrency itself in the European market.
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The G7 countries are going to oppose the issuance of tokens that replace national currencies by tightening the regulation of stablecoins, forcing issuers to comply with banking rules. By transferring the issue of tokens under the control of Central Banks. The Fed seems to be also going to require that issuers of stablecoins take a banking license.
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If this rule has been clear since the first time there was an issue that this cryptocurrency will create stable coins.
The G7 countries definitely understand very well what cryptocurrency is and maybe one day they will also create their own stable coins.
For now, the rules are very heavy on stable coins from cryptocurrency, but in the future I think it will be easy again in the various existing rules.