European Commission Proposes Exchangeability of Stablecoins Within and Outside the EU

The European Commission is set to propose the exchangeability of stablecoins issued both within and outside the European Union (EU), as reported by multiple international media sources citing insider information. The European Central Bank has expressed concerns that stablecoins could negatively impact EU banks during market instabilities. However, due to the current lack of clear regulations, there is a strong desire to establish definitive rules for exchangeability. Specifically, the proposal aims to clarify that stablecoins issued by companies holding a business license in the EU can be exchanged with 'the same brand' of stablecoins issued by companies in non-EU countries or regions.