ECB report: Stablecoins may undermine EU market integration and interoperability

According to the European Central Bank (ECB), two of the three possible stablecoin proposals could raise concerns about EU market integration and interoperability, as well as risks to financial stability, thereby affecting the safety and efficiency of payment systems.

The ECB’s crypto-asset task force said in a recent report that stablecoins may not fall within the regulatory scope of the Single Euro Payments Area (SEPA), which “harmonizes the way cashless euro payments are made across Europe and requires interoperability.”

Stablecoin initiatives such as Facebook's Libra have the potential to lead to pan-European coverage, but pan-European accessibility may require "prudent efforts," the report said. In addition, if there are multiple stablecoins, this situation may lead to the fragmentation of the entire configuration network.