The regulatory changes needed to facilitate the development of euro-denominated stablecoins
The development of stablecoins is a strategic issue for the European Union’s competitiveness and monetary sovereignty. While virtually all stablecoins in circulation are pegged to the dollar, the euro remains a marginal player in this market, despite the potential it holds for strengthening the euro’s position in the global digital economy.
A Strategic Opportunity
Euro stablecoins offer a concrete solution for giving the euro a competitive and sovereign digital counterpart. The momentum is already building: Circle, Société Générale-FORGE, and a consortium of nine major European banks have launched regulated initiatives, paving the way for a credible European ecosystem.
The ECB’s digital euro (targeted for 2029) and regulated private euro-pegged stablecoins can coexist and reinforce each other to strengthen the euro’s position in the global digital economy.
Obstacles to Overcome
Regulation (EU) 2023/1114 (MiCA) established a harmonized framework for the issuance and supervision of electronic money tokens. However, some of its provisions still limit the ability of European market participants to develop a competitive offering:
- Prohibition on their remuneration
- Lack of direct access to central bank accounts
- Risk of dual MiCA/PSD authorization
- Requirements related to the status of a significant issuer
Our Recommendations
In this context, Adan is proposing a series of regulatory changes to support euro-pegged stablecoins and the entities developing them. These proposals, intended to inform the discussions that will take place as part of the drafting of the MiCA report required under Article 142, aim to build a competitive ecosystem that serves European sovereignty.
