Commission LiviD AS ECB warns Cripto Apocalypse under Trump – Politics

The official also claimed that the ECB recently folded Stablecoin threat to strengthen the political support to his controversial digital euro project, he sought to build a pan-European payment system, which would write, in European financial infrastructure with crypto-means.

Stablecoys denominated in dollars, which they supported primarily American cash register, form 99 percent of $ 240 billion market, according to Frankfurt. The Central Bank is afraid to allow publishers who supported their product in the United States and the EU, which has already established the oligopolist market position “and could initiate a flood investment in the American debt, undermining plans in the American market.

In the worst case, ECB claimed that the EU issuers could be forced to redeem terribly-state tokens, as well as European, risking their reserves if they are not insolvent and potentially had an insolvent bank.

In its work, which also saw the policy, the Commission defiled the efficiency of the rules, even taking into account the planned American reforms, indicating that the central bank is melodramatic. “Risks arising from such global stablecoins appear to be excessive and manageable in accordance with the existing legal framework,” said the Commission in the document.

The Executive Director of the EU claimed that it was still “too early” to judge what influence on EU CRIPTO markets would have in the EU market. In any case, the rules of Mića are said to be cried to adhere to strict criteria for working on the EU market – and have already forced some main players to blame their stablecoins, including famous tenders, including famous moorings. The Commission, however, admitted that these rules require implementation.

However, the EU executive authority also noted that only one global StableCoin has been approved in the new rules so far. The draft law enables the very central bank itself to block such issuers to work if “represent a threat to smooth management of payment systems, monetary policy transfer or monetary sovereignty”, said.

Banking rules have already offer protection against potential infection, while the rights of redemption can only be limited to the EU owners, it is said.