Why Europe Is Slow-Walking Stablecoins Despite MiCA
Dr Daniele D'Alvia comments on Europe's approach to stablecoins for Forbes.
In June 2024, Europe introduced the world's first comprehensive stablecoin regulation - MiCA (Markets in Crypto-Assets). This established rules for issuers and service providers, and aimed provide stability, protect customers and ensure a consistent approach across most of the EU.
Dr Daniele D'Alviaa, Lecturer in Banking and Finance Law at Queen Mary University London, notes "by deeming stablecoins safe and supervised, MiCA effectively gives them legitimacy to scale without providing the macro tools (like issuance limits, liquidity facilities, or resolution frameworks) to contain the fallout once they do... With its focus on micro-prudential supervision, the EU risks overlooking macro-fragility and macro-prudential bottlenecks."
Read the full article on Forbes.
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Study Banking and Finance Law LLM at Queen Mary.
Dr D'Alvia is also Deputy Director of Queen Mary's Banking and Finance Law Institute.