CentBit.Online – Crypto & Blockchain Expert Bangladesh
Dutch fintech company Quantoz Payments, supported by industry giants Tether, Kraken, and Fabric Ventures, is launching two MiCA-compliant stablecoins, marking a significant milestone for regulated digital finance in the European Union.
Introducing EURQ and USDQ
The stablecoins, EURQ (Euro-pegged) and USDQ (USD-pegged), will officially launch on November 18 as e-money tokens (EMTs) licensed by the Dutch Central Bank (DNB). Fully backed by fiat reserves, these tokens are designed to offer a secure, regulated, and transparent option for digital payments across the European Economic Area (EEA).
Kraken and Bitfinex to Support the Stablecoins
The stablecoins will be listed on Kraken and Bitfinex starting November 21, providing seamless access for eligible clients in Europe. These tokens aim to revolutionize digital transactions with faster, cheaper, and more transparent payment solutions for individuals and businesses.
Compliance with MiCA Framework
The launch aligns with the EU’s Markets in Crypto-Assets Regulation (MiCA), which establishes stringent requirements for stablecoin issuers. Key provisions include:
- 1:1 fiat backing with an additional 2% reserve.
- Mandatory compliance to ensure transparency and risk mitigation.
Anil Hansjee, General Partner at Fabric Ventures, commented:
“Europeans speak loudly about MiCA making stablecoin issuance seamless in Europe, and while there are clearer rules, very few players can execute at scale.”
Industry Reactions and Concerns
While the launch has been widely celebrated, Tether CEO Paolo Ardoino voiced concerns over specific MiCA provisions, particularly the requirement for issuers to hold 60% of reserves in European banks. Ardoino warned of potential systemic risks, as banks typically loan out a significant portion of reserves, which could expose the stablecoin ecosystem to vulnerabilities during financial instability.
Norway and Global Stablecoin Regulations
- Norway’s Central Bank recently endorsed MiCA regulations, exploring their implications for a potential Central Bank Digital Currency (CBDC).
- In the United States, the stablecoin market, valued at over $140 billion, remains largely unregulated. However, a proposed bipartisan bill by Senators Cynthia Lummis and Kirsten Gillibrand aims to establish comprehensive rules, including operational requirements and reserve standards for issuers.
- The United Kingdom is also set to implement stablecoin regulations soon, while Singapore already has formal laws governing the sector.
The Road Ahead
Quantoz Payments’ EURQ and USDQ represent a significant leap forward for regulated stablecoin adoption in Europe, addressing growing demand for compliant and transparent digital assets. With the backing of major players like Tether and Kraken, these stablecoins are poised to shape the future of digital finance within the MiCA framework.
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