#EU New Regulations Boost Euro Stablecoin Development#
Hot Topic Overview
Overview
The MiCA regulation, which came into effect on December 30th in the EU, could potentially boost the development of euro-denominated stablecoins. JPMorgan analysts believe that MiCA's requirement for stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses will prompt EU exchanges to adjust their offerings, favoring compliant stablecoins like Circle's EURC while posing challenges for non-compliant ones like Tether's EURT. Tether has already discontinued its EURT stablecoin and delisted it from several EU exchanges, but it remains a "dominant force" in the global stablecoin market and is widely used in Asian markets. Tether's investment in MiCA-compliant stablecoin issuers like Quantoz Payments suggests its commitment to maintaining a presence in the EU.
Ace Hot Topic Analysis
Analysis
The MiCA regulation, which came into effect on December 30th in the EU, could promote the development of euro-denominated stablecoins. In a research report, JPMorgan pointed out that the MiCA regulation requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses, which will prompt EU exchanges to adjust their products and give compliant stablecoins an advantage. For example, compliant stablecoins like Circle's EURC will benefit, while non-compliant stablecoins like Tether's EURT face challenges. Tether has discontinued its EURT stablecoin and delisted it from several EU exchanges. Nevertheless, Tether remains the "dominant force" in the global stablecoin market and is widely used in Asian markets. Tether has also invested in MiCA-compliant stablecoin issuers, indicating its commitment to maintaining a presence in the EU. In conclusion, the MiCA regulation will create a more favorable environment for compliant euro-denominated stablecoins and could potentially drive the development of euro stablecoins.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
EU MiCA regulation may promote the development of euro-denominated stablecoins
MiCA regulation requires stablecoin issuers to hold large reserves in European banks and obtain trading licenses
MiCA regulation may lead to compliant stablecoins (such as Circle's EURC) gaining an advantage, while non-compliant stablecoins (such as Tether's EURT) face challenges
Tether and other stablecoin issuers may maintain their presence in the EU by investing in stablecoin issuers that meet MiCA standards