The Capital
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The Capital

ECB Strives to Regulate the Market for Stablecoins ASAP

The capitalization of stablecoins tied to fiat currencies is growing rapidly. Analysts at the European Central Bank drew attention to this trend.

They published a report which states that it is necessary to introduce the legal framework as soon as possible to regulate relations between holders of such assets.

The main advantage of stablecoins is the fact that such tools can be used with minimal transaction costs.

At the same time, the European regulator does not exclude the risks of destabilization of the financial sector in the case of the legalization of stablecoins. First of all, this concerns the risks of technical malfunction and non-acceptance of coins in some states.

At the end of April, the ECB issued a report in which it noted the need for a qualitative modernization of the payment infrastructure in the European Union. One of the elements for improving the regional financial system will be the launch of the digital version of the euro.

Author: Marko Vidrih

Featured image credit: Pixabay

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Marko Vidrih

Marko Vidrih

1.3K Followers

Most writers waste tremendous words to say nothing. I’m not one of them.