Stablecoin Crackdown: European Central Bank Gathers Backing For Joint Issuance Ban
The European Central Bank (ECB) is reportedly gaining traction in its pursuit of a ban on multi-issuance stablecoins across the European Union (EU). This move comes in light of recommendations from the European Systemic Risk Board (ESRB), which is tasked with safeguarding Europe’s financial integrity. Multi-Issuance Stablecoins Under Fire Last week, the ESRB approved a recommendation that advocates for a prohibition on multi-issuance stablecoins. Sources familiar with the discussions, told Bloomberg that this guidance was sanctioned by a board comprising central bank governors and EU officials. Under the multi-issuance model, licensed providers in the EU are required to hold local reserves in at least one member state while simultaneously managing reserves for identical tokens issued abroad . The ECB, under the leadership of President Christine Lagarde, has been a vocal advocate for the proposed ban, stressing the need for clearer safeguards around the operation of such...