PARIS (Reuters) -Europe's existing crypto rules already contain safeguards against risks posed by stablecoins, the region's banking supervisor told Reuters, after the European Central Bank warned that the tokens could threaten financial stability.
The ECB and the European Systemic Risk Board (ESRB) have urged Brussels to ban the “multi-issuance” model, where global stablecoin firms treat tokens they issue in the EU as interchangeable with those outside the bloc. The ESRB, chaired by ECB President Christine Lagarde, said in a report that a rush by non-EU holders to redeem EU-issued tokens could “amplify runs within the bloc.”
