So it seems like Europe is rolling out its own stablecoins now, and the latest is EURXT, which complies with the MiCA rules. With these regulations likely making it tricky for some crypto exchanges and coins to operate smoothly in Europe, they’re stepping up with their own stablecoins. It’s about to get competitive, or it feels like the EU just wants to eliminate any rivals as they gradually push out their own coins.
From here on out, it’s all about being MiCA compliant. Any new coins coming in or exchanges that didn’t get the green light will really need to hustle if they want to stay in the game in Europe.
EU wants competition, but are the other companies able to compete should be the question. Tether stable coins are not accepted by the EU which everyone also like because people do not believe in Tether. No external audition for their stable coins before which is also suspicious.
USDC that is dollar backed and EURC that is euro backed which are created by Circle are all accepted and licensed by the European Union. So they want competition, but you have to be worthy of it before they will accept you.
However, I don't see any sign that MiCA will no longer want to license companies in the future; this isn't a competition between private and government stablecoin companies. I believe MiCA has studied the potential systemic risks, and this is evident in the rejections of several large stablecoin issuers, such as Tether and Binance.
A competition like this is always good, Circle has actually deployed EURO backed stablecoin EURC and has jumped in market share recently after MiCA kicked out tether. It's definitely a competition that's needed otherwise EURC will be the only stablecoin dominating the market share.
Event hough 20 million EURXT in circulation is pretty small number, they should've cooperated with banks and others to get higher circulation number otherwise it will end up mediocre.
What a very slow move by EU. Thee are only 20m EUROXT in circulation while three figs billion USD stable coins already in the market. No doubt the the slower they move to issue their euro stable coin, the USD is getting strengthen.
No doubt that even central bank said that stable coin is strengthening usd. The Mica regulation is just so complicated.
So i believe even if EU issue their EURO stable coin. It won't able to fight USD domination in stable coin.