Even though cryptocurrencies were rolled out to veer away from the shackles of centralized institutions, over the years several authorities from across the world have attempted to regulate the crypto industry. The members of the European Union seem to be the latest ones to be making news over the same.
‘Only ECB Is Allowed To Issue A Currency’
In a recent meeting hosted in Berlin, the members of the European Union urged the European Commission to put forward sever regulations for asset-backed cryptocurrencies like stablecoins. The finance ministers of France, Italy, Spain, Germany as well as the Netherlands, released a joint statement refraining the issuance and operations of stablecoins in the bloc. The committee further suggested that these assets shouldn’t be allowed to operate until there is clarity in legality and regulatory hurdles.
Olaf Scholz, the German Finance Minister stated,
“We all agree that it’s our task to keep financial market stable and to ensure that what is a task for states remains a task for states.”
Scholz also suggested that the authorities should move forward with a strict strategy. Banning activities carried out by private sectors in case of failure to meet regulatory conditions should also be part of the authorities’ approach, the German minister added. The European Commission will reportedly put forth regulatory proposals within this month.
French Finance Minister, Bruno Le Maire shared similar thoughts and said,
“We’re waiting for the Commission to issue very strong and very clear rules to avoid the misuse of cryptocurrencies for terrorist activities or for money laundering.”
Back when the social media giant, Facebook was making efforts to roll out the Libra project, it was subject to intense scrutiny by authorities all around the globe. While the project was constantly delayed and is currently on hold, the latest news might have a negative impact on the deployment of the project. Speaking about the same, the French Minister professed,
“The central bank, I mean the ECB, is the only one to be allowed to issue a currency. And this point, it’s something that cannot be jeopardized or weakened by any kind of project including the so-called Libra project.”