As an analyst with over two decades of experience in the financial industry, I find this development by Quantoz Payments, backed by Tether, Kraken, and Fabric Ventures, to be a significant stride towards the integration of stablecoins into mainstream European finance. The MiCA-compliant EURQ and USDQ stablecoins, licensed by the Dutch Central Bank as e-money tokens (EMTs), are poised to provide secure, regulated options for digital payments across the European Economic Area.
3 key entities – Tether, Kraken, and Fabric Ventures – are supporting the Dutch fintech firm Quantoz Payments as they introduce two stablecoins, EURQ and USDQ. These digital currencies will adhere to the European Union’s regulation for crypto-assets, MiCA (Markets in Crypto-Assets Regulation).
On November 18th, these tokens – supported by both the Euro and the US Dollar – will be launched. These tokens are recognized as e-money tokens (EMTs) by the Dutch Central Bank (DNB), and they aim to offer a secure and regulated method for digital transactions across the European Economic Area (EEA). They are fully backed by real-world currency reserves, acting as stablecoins in the process.
Kraken and Bitfinex plan to start offering EURQ and USDQ from November 21st, making it accessible for qualified European clients. Their goal is to provide a more affordable, swift, and transparent platform for transaction needs, catering to both businesses and individual users.
MiCA compliance for market trust
As a financial analyst, I’m excited about the rollout of EURQ and USDQ, two innovative digital currencies set to reshape the financial landscape within the European Union. These developments are anchored in the robust MiCA (Markets in Crypto-Assets) regulatory framework, which aims to bolster trust among stakeholders by ensuring transparency and accountability from stablecoin issuers.
The digital tokens adhere to the standards set by MiCA, ensuring features such as 100% equivalent fiat holdings and a supplementary 2% reserve controlled by Quantoz. This setup ensures transparency and reduces potential risks related to cryptocurrency transactions.
As a researcher sharing insights, I’d like to highlight a point made by Anil Hansjee, General Partner at Fabric Ventures, who emphasized in a recent press release his belief that the Markets in Crypto-Assets (MiCA) regulation will make the issuance of stablecoins more straightforward across Europe.
Tether CEO MiCA warning
Although supporting the release of the two MiCA-governed stablecoins by the Dutch fintech company, Paolo Ardoino, Tether’s CEO, has expressed concerns in the past about the regulatory framework potentially introducing “risks that may impact the entire banking system” (systemic risks) for banks.
Ardoino’s apprehensions arise because the MiCA regulation mandates that stablecoin publishers should maintain a minimum of 60% of their reserves in banks within Europe, which raises questions about potential lending issues.
This clause, he cautioned, might potentially create weaknesses if banks, capable of lending almost the entirety of their reserves (up to 90%), experience financial turbulence.
Norway’s support for MiCA
On November 9th, the Norwegian Central Bank, known as Norges Bank, expressed its approval for the European Union’s Markets in Crypto-Assets (MiCA) regulations and considered their role in facilitating a digital form of national currency, specifically a Central Bank Digital Currency (CBDC).
As a crypto investor, I’ve been following the developments closely and it’s exciting to see the country embracing the MiCA framework. However, as Kjetil Watne, the project director of our bank, mentioned in an interview with CryptoMoon, we are still pondering whether additional regulations might be necessary to maintain financial stability within our crypto sector.
Norway currently belongs to the European Economic Area, which means its economic rules are similar to those of the EU, including regulations like MiCA. Regarding central bank digital currencies (CBDC), while Norway has not definitively decided on its stance, it is contemplating the development of a cross-border payment system based on CBDCs.
Read More
- EigenLayer restaking protocol’s slashing testnet now live
- Grantchester season 9 cast: Meet the characters in ITV drama
- Rumoured The Elder Scrolls 4: Oblivion Remake Dev is Working on an “Unannounced Unreal Engine 5 Remake”
- Shiba Inu burn rate plummets 90% – How this will impact SHIB prices in 2025
- Mega Man’s Best Show Is Finally Taking Over Japan
- BONE PREDICTION. BONE cryptocurrency
- Creature Commandos: Did James Gunn Reveal the DCU’s First Big Baddie?
- GBP EUR PREDICTION
- POL PREDICTION. POL cryptocurrency
- CRV PREDICTION. CRV cryptocurrency
2024-11-18 10:33