{"id":50391,"date":"2025-10-01T03:01:32","date_gmt":"2025-10-01T03:01:32","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=50391"},"modified":"2025-10-01T03:01:32","modified_gmt":"2025-10-01T03:01:32","slug":"stablecoin-crackdown-european-central-bank-gathers-backing-for-joint-issuance-ban","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=50391","title":{"rendered":"Stablecoin Crackdown: European Central Bank Gathers Backing For Joint Issuance Ban"},"content":{"rendered":"
\n

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\u2019s financial integrity.<\/p>\n

Multi-Issuance Stablecoins Under Fire<\/h2>\n

Last week, the ESRB approved a recommendation that advocates for a prohibition on multi-issuance stablecoins. Sources familiar with the discussions, told <\/a>Bloomberg that this guidance was sanctioned by a board comprising central bank governors and EU officials.\u00a0<\/p>\n

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<\/a>.\u00a0<\/p>\n

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 stablecoins within the European Union.<\/p>\n

The implications for existing stablecoin companies, such as Paxos and Circle (CRCL)<\/a>, which are already licensed to operate under the multi-issuance framework, remain uncertain.\u00a0<\/p>\n

Growing Concerns Over Financial Stability<\/h2>\n

Both Paxos and Circle primarily operate out of the US, known for its crypto-friendly regulations<\/a> under President Donald Trump\u2019s vision of transforming America as the \u201ccrypto capital of the world\u201d, which has raised concerns among some European regulators.\u00a0<\/p>\n

Concerns have been repeatedly voiced by ECB officials regarding the potential risks posed by these dollar-pegged stablecoins to both financial stability and monetary sovereignty in Europe.\u00a0<\/p>\n

Lagarde has previously warned that foreign holders of stablecoins may create significant \u201clegal and operational risks\u201d for European Union-based issuers, emphasizing the need for regulatory clarity.<\/p>\n

Despite this, the European Central Bank does not have direct authority over the implementation of regulations governing digital assets<\/a> in the EU. The European Commission has yet to adopt an official stance on the matter.\u00a0<\/p>\n

Judith Arnal, a board member at the Bank of Spain and an associate senior research fellow at the Centre for European Policy Studies, highlighted in a recent paper that the ongoing debate over multi-issuance stablecoins poses a more profound challenge to the credibility of the Markets in Crypto-Assets (MiCA) framework.\u00a0<\/p>\n

She cautioned that a regulatory landscape characterized by disputes among the ECB, the Commission, and the European Parliament could send a troubling message internationally, suggesting that MiCA may be fragile and open to varying interpretations.<\/p>\n

In conjunction with these developments, the ECB has been working since 2021 to establish a central bank digital currency<\/a> (CBDC) tied to the euro, although it is still waiting for the necessary legal framework to move forward.\u00a0<\/p>\n

\"Stablecoin\"<\/p>\n

Featured image from DALL-E, chart from TradingView.com <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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\u2019s financial integrity. Multi-Issuance Stablecoins Under Fire Last week, the ESRB approved a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-50391","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/50391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=50391"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/50391\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}