The following is a guest position and an opinion from Eneko Knörr, CEO and co-founder of Stabolut.
The Crypto Market Market Market Regulations (MICA) of the European Union (Mica) aimed to establish clarity and security in the cryptographic landscape. However, paradoxically, its too restrictive position on the stablecoins denominated in euros could inadvertently ensure the continuous domination of the US dollar in global finance.
Stablecoins have become essential in the global digital economy, allowing rapid, transparent and borderless transactions. Currently, More than 99% of the Stablescoin market is set to the US dollar. Rather than challenging this monopoly, mica regulations in Europe makes it increasingly difficult For the stables supported by the euro, to obtain a significant traction.
While declaring openly that “we do not want stablecoins, as we want to push our CBDC” would have faced serious criticism, Mica intelligently reaches the same result by imposing Such strict regulatory constraints that Euro-Stablecoins become practically impracticable.
The effect is subtle but clear – Mica effectively removes the private innovation of the Euro -stablecoin in favor of a digital currency of the central bank. This regulatory environment inadvertently has a major advantage in the USD-stable, Strengthen the position of the US dollar like the main transactional currency of the world. Despite the decline in the domination of the dollar, Stablecoins feed a renaissance For the USD, integrate it deeper into the global financial fabric.
Interestingly, this happens at a time when the countries of the BRICS and even the EU itself actively seek to challenge the domination of the US dollar in the world markets. Ironically, however, as global trade is increasingly turning to blockchain -based transactions, the importance of stabblecoins increases considerably.
Solid stables supported by the USD will play a central role to ensure that the dollar maintains – or even widen – its global market share.
On the other hand, Europe’s ambition to raise the euro through a CBDC completely lacks the brand. The conviction of the EU according to which a CBDC Euro will succeed and considerably improve the global influence of the euro is not only wrong but naive.
A CBDC may seem innovative on paper, but history suggests that government initiatives are struggling to correspond to the creativity, efficiency and adaptability of private sector innovation. In addition, CBDCs intrinsically raise concerns about privacy, government surpassing and consumer autonomy.
It is really sad to realize that Europe is missing this critical point.
The United States seems to clearly understand this dynamic. By resisting the temptation to launch a federal CBDC and the place of promoting private stablecoins, American regulators guarantee that innovation remains rapid, market -oriented worldwide.
The misstep of Europe with mica is not just a missed economic opportunity; It is a strategic error that could have deep geopolitical implications. By stifling the Euro-Stablecoins, Europe inadvertently strengthens the domination of the USD at a time when a viable Euro-stable and on a global scale could offer significant competition and diversity.
Although political decision-makers can believe that they were protecting the financial system, in reality, they build a regulatory gap around non-record. As the adoption of the crypto accelerates worldwide, capital, talent and innovation take place towards jurisdictions that embrace experimentation. The prudent excessive risks of Europe transform him into a spectator at the next era of financial infrastructure – looking at the sidelines while others write the rules.
If Europe is serious about the global position of the euro, it must reconsider its approach. The future of money will probably be shaped by those who empower innovation rather than those who restrict it. Unfortunately for Europe, mica may well prove to be the best thing that happens to the US dollar.
