European finance ministers have asked the European Commission to regulate stablecoins.
One of these measures would require all stablecoins to be backed by the euro
The finance ministers of five European countries have asked the European Commission to put in place regulations for Bitcoin Code such as Tether (USDT), USD Coin (USDC) or DAI (DAI).
Ministers from Germany, France, Italy, Spain and the Netherlands told the Commission that stablecoin regulation is needed to protect consumers and preserve the Union’s monetary sovereignty, according to Reuters .
In a joint statement to the Bundesbank conference on Friday, ministers said private stablecoin creators must adhere to EU regulations.
Although they did not mention his name, the ministers may be referring to the Facebook-backed stablecoin project. The French and German governments have already said they are opposed to private companies launching currencies that could challenge the euro.
One of these measures would require that all stablecoins are backed by the euro and the currencies of other member states in a ratio of 1: 1 and that they be held in institutions approved by the European Union.
Earlier on Friday, the head of France’s central bank said the EU was too dependent on web giants. If left unchallenged, these private companies could undermine the sovereignty of the euro area.
Also at the same conference, the director of the European Central Bank (ECB), Christine Lagarde, said that the EU had fallen behind in developing a cryptocurrency on a global level.