The European Central Bank proposes a stablecoin veto. Will the spring of stablecoin come?
In the face of the economic crisis, the European Central Bank has continued to move, putting forward requirements for both the traditional financial industry and the digital financial industry.
Recently, the European Central Bank submitted a veto on crypto regulations to the European Union.
According to the latest news from Reuters, the European Central Bank has requested the EU legislators to obtain veto power on private stabilization projects. The specific details are as follows:
“When an asset reference arrangement is equivalent to a payment system or plan, evaluating the implementation of monetary policy and the potential threats to the smooth operation of the payment system should belong to the exclusive authority of the European Central Bank.”
It is understood that the European Central Bank has begun to urge the European Union to ensure that its rulings are binding on all countries in the eurozone to achieve its own veto power over stablecoins.
The European Central Bank believes that some “strict liquidity requirements” are necessary to ensure the protection of redemption rights and customers’ direct claims on reserve assets held by stablecoin issuers.
In fact, as early as September 2020, the European Central Bank expressed concern that stablecoins might cause a “bank run”.
If EU legislators grant the European Central Bank veto power, even if the project is approved by Swiss regulators, private stablecoin issuers may face more regulatory obstacles.
The President of the European Central Bank has always been critical of stablecoins and cryptocurrencies. He had also expressed doubts with Bitcoin just a few days ago.
On the issue of the digital euro, the European Central Bank revealed that it is committed to launching a digital euro in the next five years. However, any digital euro developed by the European Central Bank will be exempt from the existing EU token laws.
The European Central Bank’s attitude towards stablecoins seems to have cast a haze on the development of stablecoins. However, unlike Bitcoin’s violent fluctuations, the stablecoins is generally stable and will not be used for speculation. Therefore, it is believed that even if the President of the European Central Bank holds a negative attitude towards stablecoins, it will not affect the global expansion and other countries’ affirmation of stablecoins.
As early as January 4 this year, the Office of the Comptroller of the Currency (OCC) has approved the Bank of America to use blockchain and stablecoin new technologies, which shows the arrival for the spring of stablecoins.
So, where can users obtain stablecoins?
In fact, stablecoins can be purchased through NGK Wallet. After purchasing the stablecoin USDN, users can pledge it to mine the NGK native tokens and obtain high returns by holding the NGK native tokens. Users can also purchase computing power through USDN, participate in computing power mining, and obtain the VAST rewards.
In the future, when more countries recognize stablecoins, the application scope of USDN will be further expanded!