Ban on proof-of-work crypto mining is probable, European Central Bank says in a new report.
Exploring the policy implications of these segments of the crypto market, the authors of the paper insist that the growth and increasing use of stablecoins around the world require immediate implementation of the necessary regulatory, supervisory, and oversight frameworks, such as thelegislation, before the interconnection between these digital currencies and the traditional financial system deepens further.
Initially serving mainly as a “relatively safe ‘parking space,’” the use cases for stablecoins have multiplied in recent years, the eurozone’s monetary authority notes, even more so with the rise of defi applications, which represent another rapidly expanding segment of the crypto market, especially over the past year.
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