The risks associated with them are to be assessed and eliminated, the EU Council statement says. The EU has not allowed the use of stable cryptocurrencies on its territory The risks associated with them are to be assessed and eliminated, the the European Council announcement says.
The European Union did not allow the use of stable cryptocurrencies (cryptocurrencies provided with material values) on its territory. This is stated in the statement of the Council of the EU at the ministerial level on economics and finance (ECOFIN), approved on Thursday.
“No globally stable cryptocurrencies should begin to be legally used in the EU until all the legal, regulatory and supervisory risks and challenges associated with them are assessed, identified and eliminated” – the European regulator noted in a statement.
Stable cryptocurrencies are digital currencies, the value of which is provided with material or financial equivalent in the form of a classic currency, valuable metals or various forms of guarantee obligations. This type of cryptocurrency, in particular, includes Tether or Facebook Libra. A binding to material values provides a certain stability to these cryptocurrencies, which Bitcoin does not have, which leads to constant sharp fluctuations in its exchange rate.
On December 2, the head of the European Central Bank, Christine Lagarde, speaking in the European Parliament, said that the ECB had begun analyzing the possibilities to issue an official pan-European cryptocurrency to the EU. According to her, this will become possible only after the development of an appropriate legal and regulatory framework.
The European Commission and the ECB consider the prospect of launching a supranational European cryptocurrency as another step in refusing to use cash, which should increase the transparency of the financial system and the traceability of any transactions by regulators, fiscal authorities and special services. At the same time, EU institutions believe that support for state-independent cryptocurrency systems created by international corporations threatens to lose state control over the financial sector.