In July we reported that Ripple was applying for a Luxembourg license to issue stablecoins – referred to as electronic money tokens – in Europe. However, there’s currently a legal debate in the EU about whether it’s acceptable to allow the issuance of multi jurisdictional stablecoins. Given Ripple’s RLUSD is issued out of New York, and it’s likely to want to issue the same stablecoin in Europe, the Luxembourg regulator CSSF may delay the application while the debate is resolved.
We asked the CSSF whether it was awaiting guidance on the topic before providing approvals of multi issuance stablecoins, without mentioning Ripple. It responded that “This topic is being discussed at the European level, therefore the CSSF is not in a position to comment on it.” We reached out to Ripple but didn’t get a response in time for publication.
A recent paper on the subject published by Spanish central banker Judith Arnal noted that the indecision on multi issuance meant that issuers that are already approved – Circle and Paxos – have a competitive advantage compared to those that are awaiting approval subject to a prolonged delay. “Ripple has encountered difficulties obtaining authorisation from NCAs (national competent authorities) and remains excluded from the EU market,” she wrote.
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