Summary
- The European Banking Authority, or EBA, said it has designated Circle's stablecoin USDC as a significant e-money token.
- It said USDC will now be subject to joint oversight by the EBA and France's Prudential Supervision and Resolution Authority (ACPR).
- The European Central Bank, or ECB, said it is reviewing the possibility of introducing a digital euro and is targeting a 2029 launch.
Forecast Trend Report by Period
European Union financial regulators have classified Circle-issued stablecoin USDC as a significant e-money token under the bloc's Markets in Crypto-Assets framework.
Cointelegraph reported on October 14 that the European Banking Authority said in a notice it had designated USDC as a significant e-money token. The status has so far been granted to only 45 projects. USDC will now be subject to joint oversight by the EBA and France's Prudential Supervision and Resolution Authority, or ACPR.
James Bennett, chief executive officer of Stable Mint, said Europe cannot ignore dollar-denominated stablecoins. Regulators can instead put safeguards and rules in place for issuers, he added.
Alexander Hoeptner, chief executive officer of AllUnity, said euro stablecoins alone are not enough for European companies to conduct cross-border payments globally.
Separately, the European Central Bank is continuing to review the possibility of introducing a digital euro. The EU first proposed a central bank digital currency in 2020. It is now targeting a 2029 launch after related legislation and pilot projects.
Doohyun Hwang
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