In a recent announcement from the European Central Bank, the enhanced electronic payment instruments, schemes, and arrangements (PISA) oversight framework will be utilized by the ECB to supervise firms that facilitate or support Stablecoins,
payment tokens and electronic wallets.
The PISA framework, which was sanctioned following a public consultation, also encompasses cryptocurrency payments. An excerpt from the press release states:
“The PISA framework will furthermore include crypto-asset-related services, such as the acceptance of crypto-assets by merchants within a card payment framework and the capability to send, receive, or make payments using crypto-assets through an electronic wallet.”
ECB executive board member Fabio Panetta remarked,
“The PISA framework will incorporate digital payment tokens like stablecoins, in conjunction with traditional payment instruments and schemes we have developed experience in over the years. There is a need for internationally coordinated efforts to address the challenges posed by global digital payment solutions and stablecoins.”
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The ECB board member affirmed that the Eurosystem is eager to collaborate with other authorities on the implementation of the PISA framework and highlighted the significance of international collaboration “to address the challenges presented by global digital payment solutions and stablecoins.” Fabio Panetta confirmed that the new strategy aligns with the upcoming EU regulations on crypto-assets (including stablecoins) and global stablecoin standards.
This announcement is likely to be positively received by European Crypto companies such as Denmark’s e-Money.com, which, in response to various comments from lawmakers regarding the potential instability of stablecoins, issued their inaugural proof of funds audit report conducted by Ernst & Young to meet demands for transparency.
e-Money published the following statement on their blog,
“We are deeply committed to transparency and compliance, and we are excited to share our very first proof of funds audit report by Ernst & Young. The report confirms that e-Money’s European stablecoins are fully collateralized and backed by actual deposits held in commercial banks. The adoption of e-Money stablecoins is still in its early stages, which is reflected in the stablecoin reserves from the last quarter. We anticipate our stablecoin reserves will grow swiftly in the upcoming months as we initiate liquidity mining projects and expand the number of connected networks.”
Firms operating under regulatory ambiguity have been notified and granted a grace period of one year. Companies already falling under the purview of the ECB are expected to comply with the new regulations by November 2022.
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