The EU Council and the Commission in a joint statement released on 5th December 2019, highlighted that whilst technological innovation can produce great economic benefits in the context of stablecoins their view is that no global stablecoin arrangement should begin operation in the European Union until the legal, regulatory and oversight challenges and risks have been adequately identified and addressed.
Whilst there have been welcome improvements in payment systems the risks raised by stablecoin arrangements should be subject to clear and proportionate regulatory and oversight frameworks. Consistent with the global response, the Council and the Commission plan to act swiftly, in cooperation with the ECB and with national and European Supervisory Authorities. This likely approach will include consultation and development of the evidence base as precursors to potentially developing new legislation for a common EU approach to cryptoassets, including stablecoins. While the Council and the Commission are committed to put in place a framework that will harness the potential opportunities that cryptoassets offer, they also want to highlight the risks that some present.