#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 believes that MiCA's requirement for stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses will favor compliant stablecoins, such as Circle's EURC, while posing challenges for non-compliant ones like Tether. Tether has already discontinued its EURT stablecoin and delisted from multiple EU exchanges. Nevertheless, Tether remains a "dominant force" in the global stablecoin market and is widely used in Asian markets. Tether's investment in MiCA-compliant stablecoin issuers 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 potentially boost the development of euro-denominated stablecoins. In a recent research report, JPMorgan pointed out that MiCA requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses, which will prompt EU exchanges to adjust their offerings and drive the development of compliant stablecoins. For instance, compliant stablecoins like Circle's EURC will benefit, while non-compliant stablecoins like Tether's EURT face challenges. Tether has already 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's investment in MiCA-compliant stablecoin issuers like Quantoz Payments indicates its commitment to maintaining a presence in the EU. The implementation of MiCA will propel the development of the euro-denominated stablecoin market and create conditions for the euro to play a more significant role in the digital asset space.
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, which will give compliant stablecoins an advantage
Non-compliant stablecoins such as Tether will face challenges, such as being forced to stop issuing or being delisted from EU exchanges
The implementation of MiCA regulation may lead to a more concentrated euro-denominated stablecoin market, dominated by compliant stablecoins like Circle's EURC