Crypto in Europe: goodbye Bitcoin, hello stablecoins

Europe and stable currencies, the beginning of mad love? – No one should ignore Mika (Markets in crypto-assets), a plan responsible for framing the use of cryptocurrencies approved at the beginning of last October. At least with a few exceptions. Indeed, it is hard to resist the temptation to use these digital currencies called stablecoins. So why wait? European market operators will soon be able to get in on the fun thanks to a brand new pilot scheme. All the details.

Stabilcoins, here we come!

In their reservoir filled with new sand, European bankers will be able to try to manipulate an entirely new type of asset. Tokenized financial products. Let’s not play with words, in short, cryptos. Actually, a initiAtivE of a completely new type has just been approved by the European Commission. This is the pilot plan DLT (Distributed Ledger Technology). Simply put, it is a transitional regulatory framework that allows some market players to use “distributed ledger technologies”. of stable currencywhat.

This pilot will allow them to use stablecoins for interbank exchanges and settlements without waiting for the implementation of MiCA. A planned implementation at best for 2024. So there is a lot of anticipation to be said for a new toy that is highly desirable. Instant international transfers at a lower cost, hard to resist for a banker.

Stablecoins will arrive on the European scene from 2023

Players in traditional and digital finance will be able to experiment with these new types of exchanges within one regulated environment. this, from March 2023 and for a period of 3 years, renewable once. It will also provide concrete insight into the use of distributed ledger technologies within financial markets for future integration.

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Crypto sandbox in European finance

Thus, participants in the DLT pilot project will be exempt from some very specific parts of the financial services regulations. This is especially true of Markets in Financial Instruments Directive (MiFID) AND Central Securities Depository Regulation (CSDR).

Bankers will finally be able to take advantage of crypto through stablecoins that they will be free to manipulate thanks to the DLT project.
LStablecoins take their place in high finance

Newcomers to the financial markets, not licensed with MiFID and CSDR, will also be able to apply for the DLT project. The oldest bank in the United States, BNY Mellonwas particularly interested.

It is done. Cryptocurrencies, or at least their stable counterparts, are now making their way into the highest levels of European finance. Good or bad, time will tell. But the practicality of blockchain in interbank exchanges has been known for a long time. It was indeed time for Europe to consider this subject. A small downside, given the enthusiasm, is very surprising for the European Union which does not yet have one stable euro currency worthy of the name. Euro stablecoin currently issued by Circle, an American company….

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