In a press release by the European Central Bank on Monday the improved electronic payment instruments, schemes, and arrangements, (PISA) an oversight framework by the Eurosystem, will be applied by the ECB to oversee companies enabling or supporting Stablecoins, payment tokens and electronic wallets.

The PISA framework, which was approved after a public consultation, also covers cryptocurrency payments. An excerpt from the press release reads:

“The PISA framework will also cover crypto-asset-related services, such as the acceptance of crypto-assets by merchants within a card payment scheme and the option to send, receive or pay with crypto-assets via an electronic wallet.”

The ECB executive board member Fabio Panetta said,

“The PISA framework will include digital payment tokens such as stablecoins, alongside traditional payment instruments and schemes we have gained experience in over the years. Internationally coordinated action will also have to be stepped up to cope with the challenges posed by global digital payment solutions and stablecoins.”

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The ECB board member stated that the Eurosystem is keen on cooperating with other authorities for the implementation of the PISA framework and emphasised the importance of international coordination “to cope with the challenges posed by global digital payment solutions and stablecoins”. Fabio Panetta confirmed the new approach complements forthcoming EU regulations on crypto-assets (including stablecoins) and international standards for global stablecoins.

This news will be welcomed by European Crypto companies like Denmark's e-Money.com who after several comments from policymakers about the possible fragility of stablecoins responded to demands for transparency by publishing their first proof of funds audit report by Ernst & Young. 

e-Money made the following Statement on their Blog,

"We are fully committed to transparency and compliance and are pleased to publish our very first proof of funds audit report by Ernst & Young. The published report reiterates how e-Money’s European stablecoins are fully collateralized, backed with actual bank deposits held at commercial banks. e-Money stablecoin adoption is at a very nascent stage and such is reflected in the stablecoin reserves of the past quarter. We expect our stablecoin reserves to grow rapidly in the coming months as we launch liquidity mining campaigns and increase the number of connected networks."

Crypto companies who have been operating under regulatory uncertainty have been notified and offered a grace period of a year. Companies already under the ECB's regulatory ambit will be expected to adhere to the new rules by November 2022.

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