JP Morgan "Implementation of MiCA in Europe... Expected Increase in Euro Stablecoin Market Share"
Summary
- JP Morgan predicts that the MiCA regulation by the European Union will lead to an increase in the market share of Euro stablecoins.
- The MiCA regulation is expected to encourage European banks and financial institutions to adopt Euro stablecoins, contributing to attracting institutional investors.
- These changes could have a positive impact on the cryptocurrency market.
According to The Block, a cryptocurrency-focused media outlet, JP Morgan has projected in a report that the market share of Euro-based stablecoins will increase due to the European Union's cryptocurrency regulation, MiCA.
The report states, "Currently, the market share of Euro-based stablecoins in the overall stablecoin market is only 0.12%. However, MiCA could encourage European banks and financial institutions to adopt Euro stablecoins to meet customer demands and facilitate blockchain-based financial transactions, thereby improving this situation."
Additionally, it noted, "Although compliance with MiCA generally incurs higher costs, the long-term impact on the cryptocurrency market could be positive," adding that "this could contribute to attracting institutional investors and encouraging the adoption of Euro stablecoins."
Finally, it mentioned that "MiCA could serve as a foundation for the introduction of its own cryptocurrency regulations during the Donald Trump administration in the United States."
JH Kim
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