#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 give compliant stablecoins, such as Circle's EURC, an advantage in EU exchanges, while posing challenges for non-compliant stablecoins like Tether's EURT. Tether has already discontinued its EURT stablecoin and delisted it from multiple EU exchanges. Despite this, 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 indicates its commitment to maintaining a presence in the EU.
Ace Hot Topic Analysis
Analysis
The implementation of the EU's new MiCA regulation could promote the development of euro-denominated stablecoins. In a recent research report, JPMorgan pointed out that MiCA regulations require stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses, which will drive the development of compliant stablecoins, such as Circle's EURC. Non-compliant stablecoins like Tether face challenges, as evidenced by Tether's forced discontinuation of its EURT stablecoin and delisting from multiple EU exchanges. Although Tether remains a "dominant force" in the global stablecoin market, its investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining a presence in the EU. The implementation of MiCA regulations will provide a more stable development environment for compliant euro stablecoins and could potentially drive the adoption of euro stablecoins in the EU market.
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