Europe could be on the brink of an economic boom driven by digital money – instead, it’s tying itself in regulatory knots. Mario Draghi is clear: the European Union is making its own journey toward a modern digital economy unnecessarily difficult. One of the biggest obstacles? Excessively strict rules on stablecoins.

🔹Digital Money That Could Supercharge GDP

Stablecoins – cryptocurrencies pegged to real currencies like the euro or the dollar – are not just a technological gimmick. They represent a revolutionary way to send money, trade, and lend instantly, securely, and cheaply – without intermediaries. They're "programmable cash" that could dramatically increase the efficiency of financial systems across Europe.

With stablecoins, migrant workers could send money home in seconds for a few cents. Startups could raise capital instantly via digital channels. Everything would run on blockchain – transparent and free from bureaucratic delays.

🔹Europe Has the Tools – But Blocks Its Own Path

The EU has had a legal framework for digital money – called electronic money – for over 20 years. Instead of expanding this well-established system to embrace blockchain, it buried it under new red tape. The new MiCA regulation (Markets in Crypto-Assets) officially treats stablecoins as electronic money but simultaneously adds burdens that hamper their growth.

🔹MiCA Favors Banks Over Innovation

The biggest problem? Under MiCA, stablecoin issuers must hold at least 30% of customer funds with banks – and share their revenue with them. In other words: banks profit even when they play no real role in the system.

This makes stablecoins unnecessarily expensive, slows innovation, and shifts risk back into the banking sector. Worse, it directly contradicts the original electronic money directive, which was designed to support competition and a level playing field. MiCA does the opposite: it favors traditional banks over tech firms.

🔹What Europe Should Do

While the U.S. is preparing a stablecoin law to support the digital dollar, the EU is hampering its own fintech ecosystem – even though it already has the knowledge and legal infrastructure to lead. What can Europe do?

🔹 Remove unnecessary blockchain-specific bureaucracy in MiCA.

🔹 Give fintech firms the same access to payment systems as banks.

🔹 Allow euro stablecoin issuers to connect directly to the European Central Bank.

This would level the playing field and unlock the huge innovation potential of Europe’s on-chain economy. As Draghi rightly said: it's time for a radical change in mindset.



#Stablecoins , #DigitalFinance , #Regulation , #worldnews , #Eu

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