Stable coins: Five EU members threaten to be banned

Germanyandfourother EU memberstatesarecallingforstrongregulation of stablecoins in the EU.Thefivestatesjointlydeclaredthis in Berlin.

The largest EU members in terms of economic strength agree: Should the EU not introduce strict regulations for stable coins, they would support a ban on them. Germany, France, Italy, Spain and the Netherlands announced in Berlin on September 11th that they expected a proposal from the EU Commission by the end of September.Stable coins are non-governmental cryptocurrencies, the rate of which is linked to one or more fiat currencies.

These include, for example, Libra, the planned coin from Facebook, and Tether (USDT), which maps the US dollar (USD) 1: 1. The finance ministers of the five countries justified their statement by stating that only the European Central Bank (ECB) could issue a currency.Stable coins should meet high standardsFear of terrorist financing and money laundering also play a role in the considerations. Critics of stable coins also see market stability as endangered by them and data protection as not necessarily guaranteed.

The countries therefore demand that stable coins must be linked to exactly one existing currency and that they do not risk the stability of the financial market.