ECB wants final say on the legal status of private stablecoins in the EU

The European Central Bank has required veto energy from lawmakers in the European Union over personal stablecoin projects like Diem.
The European Central Bank has sent its official opinion on crypto regulations to the European Commission.According to Reutersthat the ECB has requested EU lawmakers for veto powers concerning private stablecoin projects such as the Facebook-backed Diem.  An excerpt from the ECB opinion record reads:”Where an asset-reference agreement is tantamount to a payment method or strategy, the evaluation of the possible hazard to the behavior of monetary policy, and to the smooth functioning of payment systems, in case fall within the exclusive competence of the ECB.” Included in the demand for veto powers on stablecoins, the ECB has urged the EU to ensure that its ruling should be binding on all national authorities from the Euro Zone. In case EU lawmakers grant veto powers to the ECB, subsequently personal stablecoin exemptions such as Diem could be in for additional regulatory hurdles even in the event the project corrects consent from Swiss regulators.ECB President Christine Lagarde is a famous critic of stablecoins along with cryptocurrencies generally. As previously documented by Cointelegraph, Lagarde lately ruled out the possibility of banks daily holding Bitcoin (BTC) amid the wave of public businesses adding the greatest crypto by market capitalization for their equilibrium sheets.On the subject of an electronic euro, the ECB disclosed that it had been working towards a start over the next four decades. But, any electronic euro created by the ECB will be exempted from the existing EU digital money laws.

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