The European Union ministers have taken a firm stance on allowing stablecoins in the continent. The ministers said that no global stablecoin would be allowed until regulatory and oversight challenges and risks are identified and addressed.
European Commission is working on new regulations.
EU finance commissioner Valdis Dombrovskis revealed that the European Commission is already working on new regulations regarding cryptocurrencies and global stablecoins. In a joint statement by the Council and the Commission admitted that stablecoins might be effective at providing cheap and fast payments. Ministers also appreciated the European Central Bank’s work on a public digital currency. The ECB is of view that a public digital currency could be necessary if payments within Europe remained too expensive.
Bank of France announces to test it CBDC.
Earlier, the central bank of France revealed that they will test a central bank-issued digital currency by the end of Q1 2020. The governor of the central bank said that the country is keen on contributing to the digital currency innovation. He stated the bank needs to experiment with the new technology seriously and methodically. However, the pilot project will not include retail payments.
Central banks all over the world are researching and considering to issue centralized national digital currency while maintaining a negative stance on decentralized cryptocurrencies.