Thanks for the chance to share this in The Counterbalance, a newsletter worth reading and subscribing to. thecounterbalance.substack.com/p/big-techs-...

My take: “We need to decide if we want these tech companies as financial players. It will be hard to remove them, but we should keep commerce & banking separate. At least ring-fence financial units.”

But the technical analysis did not change: (big tech) stablecoins in a large scale pose risks to consumers, financial stability and might even undermine monetary sovereignity. What changed is the political evaluation of the risks vs. benefits.

Remember 2019?
Steven Mnuchin, former US-Treasury Secretary called then-Facebook’s Libra a 🚨 “national security issue.” 🚨

Now, we’re just a few steps away from the same firms launching their own stablecoins – but this time with legal certainty.

📣 The development of big tech in #finance is rapid. We need a swift and clear European answer. Read about it in more detail: www.finanzwende-recherche.de/wp-content/u...

⚖️ ...if segregation is not successful, the EU needs to introduce necessary tools to break up the financial unit from the big tech. 5/6

🌐 ...a clear segregation of big tech financial services into a ring-fenced unit within the big tech company. 4/6

📲 …promotion of a public and European critical infrastructure, to strengthen EU sovereignty - particularly in the payment sector, as is currently done through the #digitaleuro. 3/6

The #EU needs...

🏦 …more cooperation between supervisory authorities for #competition, #data protection and #finance to understand #bigtech specific risks from their financial activities. 2/6