France based Next Generation, and Irish EMI, DECTA have entered into discussions to explore the opportunity for the issuance of a Euro-pegged stablecoin (EURT) in compliance with applicable regulatory requirements including MiCAR.
The flourishing digital asset market which is now subject to the MiCAR regulatory environment in the EU provides an exceptional opportunity for exploring opportunities for such collaboration between Next Generation and DECTA.
Deemed an electronic money token (EMT) under MiCAR, a Euro-pegged stablecoin may only be issued in the EU either by a credit institution or by an EMI.
For this reason, DECTA, which is authorised by the Central Bank of Ireland as an EMI, may be a potential issuer of a Euro-pegged stablecoin/EMT.
Any proposal for DECTA to issue a Euro-pegged stablecoin/EMT will of course be subject to the prior approval of the Central Bank of Ireland.
In its turn, if such a strategic alliance is formed, Next Generation’s role would be in relation to managing key technological components of the strategic alliance.
The potential of the EURT project is an exciting opportunity for both companies whose expertise, technical capabilities and regulatory awareness are mutually complementary.
The enhancement of the regulatory environment for stablecoins in the EU with the introduction of MiCAR has certainly made collaborations such as this an interesting proposition for companies with the requisite licences and skill sets.
As Suren Hayriyan, the president of Next Generation, stated, “The implementation of MiCAR has opened a new era in the history of the segment of modern digital finance in Europe. As the share of European coins is currently unfairly low, we will witness a very rapid increase in their positions.
The demand for Euro stablecoins is extremely high. Companies, entrepreneurs and private users today lose a lot on forced conversions.
I do not expect, of course, that we will soon see parity in the positions of American and European coins in the near future. But I have no doubt that there will be a rapid growth to the proportions in which these fiat currencies are now.”
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