European Union finance ministers have agreed a defacto ban on the launch in the region of so-called global ‘stablecoins’ such as Facebook’s planned Libra digital currency until the bloc has a common approach to regulation that can mitigate the risks posed by the technology.

In a joint statement the European Council and Commission write that “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 statement includes recognition of potential benefits of the crypto technology, such as cheaper and faster payments across borders, but says they pose “multifaceted challenges and risks related for example to consumer protection, privacy, taxation, cyber security and operational resilience, money laundering, terrorism financing,

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