European Central Bank wants to ditch “Stablecoin”
Last Updated on 23 September 2020 by CryptoTips.eu
A few days ago, we reported how the European Commission seemed to be fearful of Facebook’s Libra project as it could really undermine the European Central bank’s ability to control the flow of money. Five days after the Commission launched a document criticizing digital currencies and promising to regulate them by 2024, the European Central Bank went a step further and claimed that Stablecoins were not what their name promised to be. The US made a similar move yesterday, which lends to make some believe it is a coordinated mover.
No stability
The ECB, keen to cling onto its power, released a document entitled Stablecoins: Implications for monetary policy, financial stability, market infrastructure and payments, and banking supervision in the euro area (what’s in a name) in which it attacked the new sort of cryptocurrency, claiming it was not to be trusted in the long term.
The key phrase stated:
As regulatory principles are established and approaches are defined, the term ‘stablecoin’ should be replaced by a choice of terminology to shift the emphasis away from the issuer’s promise of stability
In other words, the ECB does not seem ready to admit that crypto could actually become a significant replacement for any fiat currency at this point and is hoping to halt its development if they can.
"Earlier today, ECB chief Christine Lagarde said a digital euro could become a viable alternative to existing cryptocurrencies and also prevent the Eurozone's monetary sovereignty from falling into the hands of private companies.” https://t.co/kZ1M6tTosC#FutureOfMoney
— Mike Riddell (@mikeriddell62) September 22, 2020
It considers that any bank run on a stablecoin replacing a fiat currency in the future could not be controlled by the ECB, in other words the Commission would not hold sway over what citizens can do / buy with their money or how much it’s worth.
Digital Euro
ECB chief Christine Lagarde meanwhile stated that a digital euro could become a viable alternative to existing cryptocurrencies.
In other words, not only does the EC want to regulate cryptocurrencies, they also want to create a coin of their own. Not sure if the current coins in the cryptosphere will allow this to happen all too easily.
Fight is on I guess.
