Eurozone Finance ministers will reportedly meet on October 9 to discuss how they can support the development of euro-denominated Stablecoins, to prevent the sector from being dominated only by the US Dollar (USD) Denominated Coins, which is currently the case.
According to a reuters ReportWith reference to “an EUR -zone official”, EU financial ministers from the 20 countries in the euro area will discuss several issues related to the thriving Stablecoin space, as recently surpassed $ 300 billion in market value.
Specifically, on the agenda will be if the EU has created the right balance between risk reduction and the promotion of financial innovations, whether it should be more supportive for the sector, and if there are any regulatory issues that the block needs to “better care for the development” of Euro Stablecoins.
“So the discussion is basically how should we position ourselves against all this,” the official told Reuters. “This is very an early commitment. It is mainly about putting this issue in the hands of finance ministers, getting their attention, first reactions, and we will then see where it will take us later.”
Currently Top euro StabelecoinBy market value, EURC, a Euro-supported Stablecoin is issued by Circle (Nasdaq: CRCL), the American company behind the leading USD-denominated Stablecoin USDC.
By comparison, Eurc has a market value of $ 259 million, while USDCS is over $ 75 billion, and the latter is not even the best USD Stablecoin on the market; The honor goes to Tetherwhich has a market value of $ 178 billion.
Here lies the challenge for the EU: launch of one Euro Stablecoin It can compete with these USD power houses in terms of usability and transaction volume.
The dollar has long been the standard currency for international trade, the benchmark for global financial stability and an important measure of economic confidence worldwide. Meanwhile, so -called ‘the dollar“has seen its already significant global influence further cemented in economies around the world.
It is then no surprise to see USD dominate Stablecoin Market also, especially with a large part of
blockchain Development that takes place in the United States. The country has also recently taken measures to maintain this dominance.
In July, President Trump signed the Genius to law, which provides more clarity to the US Stablecoin market and has also stipulated that US Stablecoin issuers base them on USD or US Treasury.
However, the EU has been slow when it comes to supporting the digital asset space. It was the first major jurisdiction that introduced extensive, tailor -made digital asset regulation in the form of Markets in crypto assets (Mica) Regulatory framework, which fully came into force at the end of last year.
Based on the information from the named official, reported by Reuters in the preparations for the ministerial meeting, the next challenge that the block has set for itself is to keep up with the Stablecoin race.
Another part of this challenge, and reportedly something that the finance ministers in the euro area will discuss is how these Stablecoin goals can marry the ongoing development of the EU Digital euros Central Bank Digital Currency (CBDC).
CBDC V Stablecoins
European Central Bank (ECB) has developed a digital euro since 2021 and is anxious to see it realized. The project has been held by the European Parliament, which has drawn its feet on the necessary regulations. But a Breakthroughs were reportedly made Recently, and the ECB is now targeting a launch in 2029.
The digital euro would be a form of digital money issued by the central bank, in other words, a CBDC. It would work in the same way as a Stablecoin, which maintains a fixed value against the euro, but unlike private Stablecoins, it would be a direct responsibility for the central bank.
A popular argument against a digital euro is that, if generally adopted, it can reduce the demand for privately issued Euro-Denominated Stablecoins.
This is also one of the reasons why many pro-free market legislators in the United States, including President Trump, are anti-CBDC-to Trump’s score signing An executive order in January “prohibits the construction, issuance, circulation and use of a CBDC within US jurisdiction.”
With the EU seemingly set on the road to digital euro, the attempt by Eurozone Finance ministers can also promote and care for more “high -quality” Euro Stablecoins prove to be a classic case of trying to get their cake and eat it – finally to the disadvantage for the one or the other.
Look at | Mica and the future of Stablecoins: What comes the next for Tether?
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