The European Union and Crypto
CZ stated on social media that the EU needs Bitcoin.
Previously, according to Bloomberg (BBG), European Central Bank President Lagarde expressed confidence that Bitcoin will not enter the official reserves of the EU.
Additionally, according to Cointelegraph, Tether expressed concerns about the delisting of USDT from exchanges due to the EU's MiCA regulations. Crypto.com confirmed that it will delist USDT and nine other tokens from its European platform starting January 31, after Coinbase had already removed USDT in December 2024 for compliance reasons.
Tether criticized this move as hasty and lacking clear justification, warning that a sudden delisting could increase market instability and impact European crypto users.
MiCA requires non-compliant stablecoins to be fully restricted by the end of the first quarter of 2025. Furthermore, Tether announced that it will relocate its headquarters to El Salvador, supporting the country's Bitcoin policies and the development of decentralized finance.
Explaining MiCA, the European Securities and Markets Authority (ESMA) previously issued a statement on asset-referenced tokens (ARTs) or stablecoins.
In the statement, ESMA emphasized the role of national competent authorities (NCAs) in the EU member states in guiding CASPs to ensure their services comply with the latest guidelines from the European Commission. The guidelines clearly state that MiCA prohibits issuers from providing unauthorized and non-MiCA compliant stablecoins.
The guidelines state that "persons other than the issuer may also offer or seek to have listed for trading to the public electronic money tokens (EMTs) or asset-referenced tokens (ARTs)," and added that such issuances must meet certain conditions. One condition is that the issuer must be authorized in the EU, and another is that the relevant persons must obtain written consent from the issuer. According to ESMA, NCAs should ensure CASP compliance with non-compliant stablecoins "as soon as possible" and no later than the end of the first quarter of 2025.
Exception: Czech Republic
According to Bloomberg, the Czech National Bank (CNB) is set to vote on a proposal to hold a $7 billion Bitcoin reserve.
CNB Governor Aleš Michl plans to propose allocating up to 5% of the reserves to Bitcoin, noting that interest in Bitcoin has continued to grow since the launch of BTC spot ETFs by institutions like BlackRock. However, he also acknowledged Bitcoin's high volatility and said further evaluation of its potential role in central bank reserves is still needed.
If the proposal is approved, the CNB could hold at least $7 billion in Bitcoin, a portion of its total $146 billion in reserves. The proposal has garnered some local industry support, with Trezor analyst Lucien Bourdon stating that the Czech Republic has long been at the forefront of Bitcoin innovation, including the world's first mining pool, hardware wallet, and major Bitcoin conferences.
Standard Chartered analyst Geoff Kendrick said that at current prices, the Czech central bank could hold as many as 69,000 Bitcoins. The country currently known to hold the most Bitcoin is El Salvador, with 6,049 BTC.
Geoff Kendrick further noted that the Swiss National Bank also appears to be moving towards embracing Bitcoin, with Swiss activists collecting signatures to call for a vote on the issue, though it may take some time for Switzerland, whose foreign exchange reserves are six times larger than the Czech Republic's.
Looking Ahead
Looking ahead, the EU's policies and actions in the cryptocurrency space will continue to be closely watched globally. As the MiCA regulation is gradually implemented, the stablecoin market will face new challenges and opportunities.
While Tether has expressed concerns about the new rules, this policy may encourage more projects to pursue compliance, leading to a more stable and healthy market environment. The compliance of stablecoins will become a key issue for the entire crypto ecosystem and may influence regulatory strategies in other parts of the world.
On the other hand, the interest of the Czech National Bank and the Swiss National Bank in Bitcoin indicates that Bitcoin is gradually being seen as a new store of value.
As more countries and institutions explore incorporating Bitcoin into their reserve assets, the position of cryptocurrencies in the global financial system may be further strengthened. Although the high volatility of Bitcoin remains a risk to be monitored, its potential for high returns also attracts more and more investors.
