European Banking Authority (EBA) believes that central banks should impose a ban on large steblecoins if they pose a threat to the monetary policy of specific countries.
It was stated by the chairman of EBA José Manuel Campa, speaking at a symposium on central banks and digital currencies in London.
Kampa explained that under the regulation on regulation of the crypto-asset market in the European Union (MiCA), for which the European Parliament voted for by a majority in April, the EBA will be able to supervise the activities of stablcoin issuers.
The bill would require issuers to be licensed to operate in the EU and to have reserves to secure assets.
However, if there are more than 1 million transactions per day with any crypto-asset, central banks should intervene, the official said.
The EBA acknowledges that stabelcoins could become a more relevant means of payment, just as private payment systems now interact with public currencies.
Ambitious cryptocurrency projects will be under close scrutiny by the EBA. All issuers of cryptoassets must undergo a risk review.
It touches on prudential oversight, redemption mechanisms, and corporate conduct.
And large cryptocurrency issuers will undergo “extended stress testing” of reserves,” the EBA chairman assured.
Last year, members of the European Parliament demanded that the EBA create a list of cryptocurrency companies that could be at risk of money laundering and terrorist financing.
In July, the EBA reported a shortage of employees to oversee the crypto industry.