Christine Lagarde, president of the European Central Bank (ECB), has called on policy manufacturers to address gaps in Stablecoin regulation, especially for issued beyond the “stable” Crypto-Assets (MICA) market in the European Union.
In prepared comments for the ninth annual European Systemic Risk Board conference on Wednesday, LagardeSays EU lawmakers should take steps in situations where a creature covered under MICA and a non-EU entity together issuing stablecoins.
He added that such stablecoin issues should not be allowed to operate in the EU unless there are “stable equality regimes” in the source, which includes allowing EU investors to “always redeem their holders at the PAR value” and ask that those who have given their coins will fully restore.
“In the event of a run, investors are naturally preferred to redeem in jurisdiction with the strongest care, which is likely to be the EU, where Micar also prohibits redemption fees,” Lagarde said. “But the reserves held in the EU may not be sufficient to meet such concentrated demand.”
A stablecoin is a cryptocurrency Designed to maintain a stable value by peg it in an asset such as the US dollar or euro.
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ECB policies have explored the potential to be -controlled of a digital euro for years, but can be forced by the Stablecoin laws and regulations pushed by the Trump administration in the US.
The US Congress passed a law in July Establishing a plot for stablecoins, it is likely to benefit those who provided US coins.
Related: EU Exploring in Ethereum, Solana for Digital Euro Launching: FT
“(US government policies) may result in not only further losses of fees and data, but also with euro deposits transferred to the United States and further strengthening the dollar’s role in cross-border payments,” Says ECB Executive Board Member Piero Cipollone in April.
The US, EU and China competing for the Stablecoin Market?
In the midst of a law scheduled to be enforced with US and EU policies considering -on the best path forward to meet Stablecoins, China Can also look In a coin supported by Yuan.
Reports from August suggested that the Chinese government is considered a stablecoin who is in his renminbi currency following the slow control of a digital yuan. Like Monday, officials have not confirmed whether the country will push for a state released by Stablecoin in response to US efforts to strengthen the dollar’s role.
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