In January the European Central Bank (ECB) announced that non-bank payment service providers (NB PSPs) would be allowed to access the TARGET payment systems and have central bank accounts. Some have misconstrued this as stablecoin issuers being able to back Euro stablecoins with central bank reserves. This is not correct.
A strong paper on stablecoins by the Bretton Woods Committee, was not technically incorrect, but perhaps implied this:
“The ECB published a decision that will grant non-bank payment service providers, including e-money institutions and regulated stablecoin issuers, access to Eurosystem central bank operated payment systems in 2025. But in other jurisdictions, such as the United States, nonbank entities that issue stablecoins typically have not been granted access to the central bank. A stablecoin backed by central bank reserves that settles in central bank money would effectively serve as the safest possible form of digital currency.”
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
