Fabian Astic, Global Head of DeFi and Digital Assets at Moody’s, said in an interview that the restrictions in the new EU regulations are in Europe. cryptocurrency and stablecoin that it can support their innovations.
European representatives recently voted to formalize Markets in Crypto Assets (MiCA) regulatory guidelines.
While various revisions of Europe’s national MiCA frameworks in the past few weeks have presented different positions on stablecoin regulation, eventually restrictions on non-Euro-backed stablecoins have entered regulatory guidance.
With MiCA Regulation Concerning Cryptocurrencies, Non-Euro-Backed Stablecoins Will Be Limit
The regulations placed an upper limit of €200 million (just under $194 million) on daily transactions for non-Euro-backed stablecoins.
With the final vote on the new legislation expected on October 10, executives of global bond credit rating and research firm Moody’s Investors Service offered perspective on future terms in an interview.
According to Astic, as MiCA is expected to be implemented in 2024 at the earliest, participants will have only two years to strengthen euro-denominated stablecoins in the region, which will make a euro-backed coin global bitcoin, It will bring it to an important position in the field of crypto money and DeFi.
However, Astic warned that without enough euro-backed stablecoins, progress could slow as the vast majority of stablecoins today are backed by the US dollar.
Rajeev Bamra, Head of Moody’s DeFi and Digital Assets Strategy, noted that some of the widely used dollar-backed stablecoins are designed and used by Web3 providers outside the banking industry.
Despite this, Bamra said the current traditional financial players entering this space bring with them an existing history of compliance and consumer protection that regulators may prefer.
Astic continued his thoughts on the subject as follows:
“The deployment of non-euro stablecoins is important because it can fuel or be a real barrier to the European DeFi ecosystem.
It really will depend on whether European market participants are ready to feed the market with more euro stablecoins between now and the official implementation date.”
*Not investment advice.
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