Bloomberg "Europe seeks to ban multi-issuance stablecoins"

European financial authorities are reported to have adopted a recommendation to ban stablecoins with a multi-issuance structure (multi-issuance).

On the 30th (local time), Bloomberg reported, citing multiple sources, that the European Systemic Risk Board (ESRB) passed a recommendation to ban multi-issuance stablecoins. Multi-issuance stablecoins refer to coins whose issuers are multiple entities or that are issued in multiple countries or jurisdictions.

The outlet noted that this recommendation could be unfavorable to global stablecoin issuers such as Circle and Paxos. In particular, within the European Union there has been ongoing concern that if crypto-friendly, U.S.-based issuers enter the European market, the existing crypto-asset regulation MiCA alone may be insufficient to respond.

The ESRB recommendation has no legal force but exerts considerable influence on European member states and can be used as leverage if not implemented. The adoption of this recommendation was led by the European Central Bank (ECB), and the board includes ECB President Christine Lagarde. President Lagarde has previously warned that multi-issuance stablecoins could threaten European financial stability.

According to the report, there were internal opinions suggesting the establishment of safeguards for multi-issuance stablecoins, but the ban recommendation was reportedly adopted on the grounds that such measures would not be a fundamental solution.