Introducing the stablecoins EURQ and USDQ, pegged to the euro and US dollar, launched on 18/11 in Europe, compliant with MiCA regulations and supported by Tether, Kraken, and Fabric Ventures.
The European cryptocurrency market officially welcomes two new stablecoins, EURQ and USDQ, designed to comply with the European Union's (EU) Regulation on Markets in Crypto-Assets (MiCA). Launched on 18/11, the two stablecoins are pegged to the euro and US dollar at a 1:1 ratio, with full reserves in fiat currency and strict additional reserve requirements. This event marks an important step in establishing a more regulated and transparent stablecoin market in Europe.
The launch of EURQ and USDQ is the result of a collaboration between Tether, Kraken, Fabric Ventures, and the Dutch fintech company Quantoz Payments. Quantoz Payments, the official issuer, has been licensed by the Dutch Central Bank (DNB) to operate as an Electronic Money Token (EMT).
The cryptocurrency exchanges Kraken and Bitfinex are expected to list EURQ and USDQ on 21/11, providing access for eligible investors across Europe.
MiCA: The Key Legal Framework for Stablecoins
Compliance with MiCA is a crucial aspect of EURQ and USDQ. This legal framework requires stablecoin issuers to maintain a 1:1 fiat currency reserve and an additional 2% reserve, held by Quantoz. This aims to ensure transparency, minimize risks in crypto payments, and strengthen user confidence in stablecoin issuers.
Anil Hansjee, Managing Partner at Fabric Ventures, noted that the launch of EURQ and USDQ sends a strong message about MiCA's ability to facilitate stablecoin issuance in Europe.
The goal of EURQ and USDQ is to provide a safe and compliant digital payment solution within the European Economic Area (EEA). With the support of industry leaders like Tether and Kraken, the stablecoins promise faster, cheaper, and more transparent transactions for both businesses and consumers.
However, the implementation of MiCA has also raised some concerns. Tether CEO Paolo Ardoino, while supportive of the launch of EURQ and USDQ under MiCA, previously expressed concerns about the potential for the legal framework to create "systemic risk" for the banking industry.
Specifically, MiCA requires stablecoin issuers to hold at least 60% of their reserves in European banks. This could become an issue if these banks, which are allowed to lend up to 90% of their reserves, face risks or financial instability.
Nevertheless, MiCA has received support from some regulatory bodies. The Central Bank of Norway (Norges Bank) has recognized the potential of MiCA to support the issuance of a Central Bank Digital Currency (CBDC).
Kjetil Watne, Project Director at Norges Bank, stated that Norway, as a member of the European Economic Area and subject to EU regulations like MiCA, welcomes the legal framework. However, the central bank is still considering whether additional regulations are needed to ensure financial stability.
Norway is also currently exploring the development of a cross-border payment system based on a CBDC.
