EU finance ministers have decided not to allow Facebook Libra or any other stablecoin (cryptocurrencies tied to conventional currency reserves or physical goods) to operate in the European Union, according to Reuters.
Following the meeting ministers came to the conclusion that it is still impossible to say what risks the emergence of a new means of payment carry.
“No global stablecoin arrangement should begin operation in the European Union until the legal, regulatory and oversight challenges and risks have been adequately identified and addressed,” the ministers said in a joint statement.
Ministers also stated that there was a need to develop special laws to regulate the circulation of cryptocurrencies in the EU.
According to the European Commissioner for Financial Affairs Valdis Dombrovskis, the relevant work has already begun.
Facebook Libra, which was created by Facebook with the help of 20 different companies, is due to be launched next June. Libra's prospects worsened after Mastercard and Visa left the project in October, but the rest of the participants announced their determination to continue with it.