Core Viewpoint - The European Union needs to establish clear rules for cross-border identical stablecoins to protect users and ensure uniform standards [1][3]. Group 1: Regulatory Clarity - A senior Bank of Italy official emphasized the importance of legislative clarity regarding electronic money tokens (EMTs) issued by licensed EU firms and their interchangeability with non-EU tokens [2][3]. - The European Commission is believed to support the idea of interchangeability under EU rules, while the European Central Bank has raised concerns about potential financial stability risks [2][5]. Group 2: Multi-Issuance Model Risks - The multi-issuance model could lead to redemption requests from holders outside the EU, creating a need for third-country entities to cover any reserve shortfalls [4][5]. - This model may enhance global liquidity but also introduces significant legal, operational, liquidity, and financial stability risks at the EU level, particularly if issuers are located outside the EU [5][6]. Group 3: Consumer Protection and Regulatory Standards - Third-country issuers may not be subject to the same consumer protection and transparency requirements as those outlined in the EU's MiCAR regulations [5][6]. - To mitigate risks, issuance should be restricted to jurisdictions with equivalent regulatory standards, ensuring redemption at par and enforcing cross-jurisdiction crisis protocols [6].