Stablecoin Crackdown: European Central Bank Gathers Backing For Joint Issuance Ban

The European Central Bank (ECB) is reportedly gaining traction in its pursuit of a ban on multi-issuance stablecoins across the European Union (EU). This move comes in light of recommendations from the European Systemic Risk Board (ESRB), which is tasked with safeguarding Europe’s financial integrity.

Multi-Issuance Stablecoins Under Fire

Last week, the ESRB approved a recommendation that advocates for a prohibition on multi-issuance stablecoins. Sources familiar with the discussions, told Bloomberg that this guidance was sanctioned by a board comprising central bank governors and EU officials.

Under the multi-issuance model, licensed providers in the EU are required to hold local reserves in at least one member state while simultaneously managing reserves for identical tokens