The European Union is looking more closely at how to regulate stable money coins, but does not plan to issue any of its own.
A group in the EU presidency is working on a draft political declaration on the regulation of stable coins, a person familiar with the subject told CoinDesk. First reported by Reuters, the statement will indicate that the EU should regulate stable currencies in particular. However, the source rebuffed claims that the statement would urge the EU to create its own cryptocurrency.
"It's a rather brief statement that addresses the EU's position on how to handle these new types of cryptocurrency," the source told CoinDesk. "The focus is on how these crypto-currencies should be regulated."
The statement is being developed in response to Libra, the global stablecoin project set up by Facebook in June. Despite the regulatory restrictions on the stable amount, Libra has proceeded until now, with its Board of Governors officially joining the project last month.
The statement does not however specifically recommend that the EU develop its own cryptocurrency in response to Libra. The source of CoinDesk explained that the development of its own cryptocurrency is a possible option for the EU which, according to the statement, "should be explored".
Echoing the Reuters report, the source said: "At this point, there is absolutely no commitment to put in place new cryptocurrency," adding:
"The statement aims to emphasize the need for an appropriate regulatory framework for these stable notes and, therefore, different ideas need to be explored. One of them is the possibility of having something that is managed by the ECB [European Central Bank] and other central banks. "
The source said she could not explain what the final version of the statement would look like. The statement will be finalized by Friday 8 November and presented to the EU Finance Ministers. The statement is expected to be adopted by the EU on December 5, at the next meeting of finance ministers, the source said.
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