European Central Bank calls for clear regulation of stablecoins

The European Central Bank issued a report on global stablecoin regulation and financial stability. In its report, the European Central Bank stated that in order to take advantage of the potential advantages of a global stablecoin, it is necessary to establish a sound regulatory framework in order to deal with related risks before allowing implementation. The report also cited the advantages of global stablecoins, such as transfer speed and convenience. At the same time, the report pointed out that stablecoins may also bring certain risks to the financial system, including weakening the stability of bank funds and who will ultimately bear investment risks. The European Central Bank concluded: “Without compromising financial stability, we must ensure that stablecoins do not operate in a gray regulatory zone.”