According to a document, the European Commission is considering imposing drastic restrictions to prevent the widespread use of stablecoins instead of fiat currencies.
According to the document seen by CoinDesk, the European Commission is in favor of banning the use of large-scale stablecoins. It was stated that both sources familiar with the discussions confirmed the document.
The document is classified as “non-paper”. So it has no official validity.
The European Union has been around for a long time to regulate cryptocurrencies. A recently submitted draft banning cryptocurrencies using the proof-of-work algorithm was later revoked.
The ministers, who meet in a body known as the Council of the EU, want to stop fiat currency rivals if they become too popular.
Problems with UST continue. This fall of UST has also affected LUNA significantly. The asset declined to $0.80 earlier in the day.
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