Europe and stablecoins: The start of a crazy relationship? – Mica (Markets in Crypto-Assets), a plan for how to use cryptocurrencies that were approved at the beginning of October last year, is something that no one should ignore. At least, except for a few. It’s hard to resist the urge to use stablecoins, which are digital currencies. So why hold out? Thanks to a brand new pilot program, European market operators will soon be able to have fun. Every little thing.
Here come the stablecoins!
European bankers will be able to try to control a whole new type of asset in their tank of newly tokenized sand. Financial products that use tokens. Let’s not play with words, or cryptos, for short. The European Commission just gave its approval to a brand-new kind of project. This is the plan DLT for the pilot (Distributed Ledger Technology). Simply put, it is a temporary set of rules that lets some market participants use “distributed ledger technologies.” What is it about stablecoins?
With this pilot, they will be able to use stablecoins for interbank transactions and settlements without having to wait for MiCA to be put into place. At best, the plan is to start in 2024. So, a lot of time is spent waiting for a new, very wanted toy. Bankers can’t say no to international transfers that happen right away and cost less.
Stablecoins will be available in Europe starting in 2023.
Traditional and digital financial players will be able to try out these new types of exchanges in a controlled setting. This will start in March 2023 and last for 3 years. It can be renewed once. It will also show how distributed ledger technologies can be used in financial markets so that they can be used more widely in the future.
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Sandbox for crypto in European finance
So, people who take part in the DLT pilot project won’t have to follow some very specific parts of the rules for financial services. This is especially true of the Markets in Financial Instruments Directive (MiFID) and the Central Securities Depositories Regulation (CSDR).
The DLT project will also be open to people who are new to the financial markets and don’t have licenses for MiFID and CSDR. BNY Mellon, which is the oldest bank in the United States, was very interested.
It’s finished. Cryptocurrencies, or at least a stable version of them, are now making their way to the top of Europe’s financial world. Good or bad, the future will show. But it has been known for a long time that the blockchain can be used to transfer money between banks. It was about time for Europe to look into the issue. Still, given how excited people are, it is surprising that the European Union does not yet have a euro stablecoin that lives up to the name. Euro stablecoins are currently made by an American company called Circle.
No one knows what European regulators have planned for us. Don’t wait to put your money into cryptocurrencies. Sign up for the AscendEX platform now. Plus, AscendEX Earn gives you big returns (commercial link).
