00:02Germany and Italy have proposed to block foreign stablecoin operators from the EU, unless their home countries meet EU regulatory
00:10standards.
00:11The move could shut out some of the largest crypto firms from one of the world's biggest financial markets.
00:18Stablecoins are cryptocurrencies designed to hold a fixed value and are typically pegged to the dollar or euro.
00:24They are backed by real money held in reserve so holders can cash out at any time.
00:30The proposal would also hand regulators a hard kill switch.
00:34If a stablecoin's reserve transfer mechanism fails, if the issuer seriously breaches its home country rules or if it is
00:41acting against EU token holders' interests,
00:43the European Banking Authority would be required to ban the stablecoin from operating in the EU.
00:49The proposal refers to EU stability and sovereignty, signalling it is as much a geopolitical move as it is a
00:57financial one.
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