Document Shows EU Commission Favors Ban on Large-Scale Stablecoins

05/11 23:42

The European Commission is considering hard curbs on the ability of stablecoins to become widely used in place of fiat currency, according to a document seen by CoinDesk. Officials appear to be siding with the views of European Union finance ministers, who have proposed tough measures aimed at stopping the likes of Facebook's now-abandoned libra stablecoin from replacing the euro, and require issuance to halt if transactions top 1 million per day. Two individuals familiar with discussions confirmed the details. The document is labeled as a “non-paper,” meaning it does not reflect the commission’s formal position, and is one of a number documents being produced to influence discussions on topics such as whether crypto firms should be able to register from tax havens. National ministers, who meet in a body known as the Council of the EU, want to stop rivals to fiat from operating if they become too popular. Under their plans, regulators could order the issuers of any stablecoin exceeding 200 million euros (US$211 million) and 1 million transactions daily to cease issuances until these figures come back below the threshold.
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