EU Could Allow Central Banks to Ban Stablecoins
Main page News, European Union, Central Banks, Stablecoins

José Manuel Campa, chairman of the European Banking Authority (EBA), has said central banks should have the right to restrict the widespread adoption of large stablecoins if regulators consider that they affect public policy objectives.

According to him, the initiative will help reduce risks to financial stability and monetary policy.

Campa has clarified his office will directly supervise large issuers as part of the rules to regulate the crypto asset market (MiCA), which EU lawmakers adopted in April.

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According to the EBA president, the bill will allow central banks to intervene in the process of issuing new "stablecoins." It also requires a specific stablecoin to stop being issued if the daily number of transactions exceeds 1 million.

Campa envisions a future in which this asset class "becomes even more relevant" as a means of payment. However, issuers must comply with "sensible guardrails," including antitrust and anti-money laundering rules.

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