EU watchdog pushes for stablecoin ban: Report

The European Systemic Risk Board, a watchdog group operating within the EU, has reportedly recommended a ban on multi-issuance stablecoins, particularly those issued in partnership with entities outside the EU. This recommendation is a response to concerns regarding the risks these stablecoins pose to financial stability within the EU. The call for this ban follows recent comments from European Central Bank President Christine Lagarde, who highlighted regulatory gaps related to non-EU stablecoins. The proposed ban could pressure local authorities to impose restrictions on significant stablecoin issuers such as Circle and Paxos. The focus has also led to discussions about the possible introduction of a digital euro, with expectations that an agreement among EU member states could be reached by the end of the year, aimed at preserving Europe’s financial resilience.

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