According to the EU authorities, no global stable income project will start operating in the European Union (EU) until the associated risks to monetary sovereignty have been eliminated.
In a joint statement adopted by the Council of the European Union and the European Commission (EC), the Council and the Commission acknowledged that stable coins can be effective in delivering cheap and fast payments, but that they have much greater risks and challenges.
The Economic and Financial Affairs Council (ECOFIN), one of the oldest configurations of the Council, was held on 5 December, on the basis of data contained in an official document published at the end of November.
It is unclear whether the new statement will somehow influence the way forward or form the basis for anything legally binding.
In their statement, the EU authorities outlined a number of risks and issues related to the adoption of stable coins - digital currencies linked to another asset - in order to prevent the volatility typically observed in cryptographic currencies. If adopted globally, stable coins pose a threat to monetary sovereignty, as argued by the Council and the Commission.
