The European Union has introduced its first regulated euro-pegged stablecoin in compliance with MiCA regulations. This stablecoin, named EURI, represents a significant step forward in the development of digital finance in Europe. It was issued by the European payment bank Banking Circle, headquartered in Luxembourg. EURI is the first electronic money token created and backed by a bank according to European crypto-asset regulation standards.
The growth of the leading cryptocurrency might be supported by the increasing issuance of stablecoins, according to Marcus Thielen, the founder and CEO of 10x Research. He believes that the ongoing issuance of major stablecoins like Tether and Circle could signal the influx of fresh capital from institutional investors into the cryptocurrency market. Over the past week, approximately $2.8 billion worth of stablecoins have been issued, which Thielen interprets as a bullish indicator for Bitcoin. However, he emphasizes that for Bitcoin to experience sustained growth, favorable macroeconomic conditions in the U.S. alone won’t be sufficient. Real cash inflows through stablecoins will be required.
Until 2024, the European cryptocurrency market operated on the principle “everything that is not explicitly prohibited by law is allowed.” Market participants enjoyed a high degree of freedom due to the lack of clear regulatory rules. Authorities in most countries believed that cryptocurrencies should adhere to traditional market regulations and did not require separate legislation. For example, Gary Gensler once stated that all cryptocurrency assets, except BTC, are securities.
