Five major European nations have called for stablecoin regulations, as fears mount over state sovereignty and consumer protection, according to a Reuters report published on September 11.

• France, Germany, Italy, the Netherlands and Spain have all asked the European Commission to prepare strict regulation for the stablecoin market
• Officials have asked for stablecoins operations to be stopped until after regulation has been formed
• Authorities fear that it might weaken the sovereignty of national currencies, and endanger consumers
• Among other requirements, officials want stablecoins to be backed by reserve assets to be denominated in Euros or other EU currencies
• Authorities have felt this way since the introduction of Facebook’s Libra, which received flak from lawmakers across the world
• Regulatory proposals are expected at the end of September