Europe and stablecoin, the beginning of crazy love? – Nobody should ignore Not (Cryptocurrency markets), a responsible plan for framing the use of cryptocurrencies adopted at the beginning of last October. At least with a few exceptions. In fact, it’s hard to resist the temptation to use these digital currencies called stablecoins. So why wait? European market players will soon have fun thanks to a brand new pilot project. All the details.
Stablecoin, here we come!
In their tank full of freshly tokenized 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, with cryptocurrencies. A completely new initiative, in fact, has just been approved by the European Commission. This is the pilot plan DLT (distributed ledger technology). In a nutshell, it is a transitional regulatory framework that allows some market players to use “distributed ledger technologies”. Of the stable coinswhat.
This pilot will allow them to use stablecoins for interbank trading and settlement without waiting for the implementation of the MiCA. A planned implementation at best for 2024. So much anticipation for a new toy which is very desirable it must be said. Instant international transfers at a lower cost, difficult for a banker to resist.
The actors of traditional and digital finance will be able to experiment with these new types of exchanges within a 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 mainstreaming.
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Crypto sandbox in European finance
Participants in the DLT pilot project will therefore be exempted from some very specific parts of the financial services legislation. This concerns in particular the Markets in Financial Instruments Directive (MiFID) and the Central Securities Depositories Regulation (CSDR).
Newcomers to the financial markets, unlicensed with MiFID and CSDR, will also be able to apply for the DLT project. The oldest bank in the United States, BNY Mellonhe was particularly interested.
It is done. Cryptocurrencies, or at least their stable counterpart, are now making their way into the higher echelons of European finance. Good or bad, time will tell. But the practicality of blockchain in interbank trading has long been known. It was indeed time for Europe to delve into the subject. Small inconvenience all the same given the enthusiasm, it is very surprising for the European Union that it does not yet have a stable currency of the euro worthy of the name. Euro stablecoin currently issued by Circle, an American company ….
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