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European Central Bank Calls for New Regulatory Framework for Stablecoins
Summary: European Central Bank (ECB) releases an in-depth report discussing the asset management function of global stablecoins and calls for regulations to address risks, on May 5.
European Central Bank (ECB) releases an in-depth report discussing the asset management function of global stablecoins and calls for regulations to address risks, on May 5. “In order to reap the potential benefits of global stablecoins, a robust regulatory framework needs to be put in place,” the report says.
The report stresses that users should be informed that, regardless of the possibility to be pegged to fiat currency at any time, stablecoins does not equal to a deposit. The value of a stablecoin is not covered by traditional safety nets “such as deposit guarantee schemes and central banks’ lender of last resort functions.”
By Yiran Dai
Tags: ECB,Stablecoins
Link: European Central Bank Calls for New Regulatory Framework for Stablecoins [Copy]
