30s Summary

Dutch fintech Quantoz Payments is launching two new stablecoins, EURQ and USDQ, supported by Tether, Kraken, and Fabric Ventures. Licensed by the Dutch Central Bank and adhering to the European Union’s Markets in Crypto-Assets Regulation (MiCA), these coins aim to offer a secure, regulated option for digital payments in Europe. Both will be listed on Kraken and Bitfinex, making transactions cheaper and more efficient for eligible European clients. The issuance aligns with MiCA requirements, including 1:1 fiat backing, but concerns have been raised over the requirement for stablecoin issuers to hold significant reserves in European banks.

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The Dutch fintech company, Quantoz Payments, is releasing two new stablecoins, EURQ and USDQ. They’re backed by notable names like Tether, Kraken, and Fabric Ventures. To align with the rules of the European Union’s Markets in Crypto-Assets Regulation (MiCA), these coins are licensed by the Dutch Central Bank. Being fully supported by fiat reserves, these coins aim to provide a secure, regulated option for digital payments across Europe.

The two new stablecoins will be listed on Kraken and Bitfinex on November 21. This will ease the process of transactions for eligible clients in Europe. And the good news? Transactions will be cheaper, faster, and transparent for both businesses and consumers.

The launch of EURQ and USDQ is a big deal for regulated digital finance in Europe. The MiCA’s framework backs these coins adding trust in their issuers. The coins match up with MiCA’s needs, having 1:1 fiat backing and an additional 2% reserve held by Quantoz. This provides transparency and reduces risks linked with crypto payments. Anil Hansjee, a big player at Fabric Ventures, stated that Europeans are excited about MiCA making the issuance of stablecoins in Europe smoother.

While supporting Quantoz’s issuance of EURQ and USDQ, Paolo Ardoino, the big boss of Tether, expressed concerns. He believes that the regulatory framework of MiCA could pose “systemic risks” to banking. He’s particularly worried about a provision that requires stablecoin issuers to hold at least 60% of their reserves in European banks. This could become an issue if the banks, which can loan up to 90% of their reserves, face financial issues.

Norway’s central bank, Norges Bank, showed support for the EU’s MiCA rules. The country is interested in the MiCA framework, but is still deciding whether more rules are needed to maintain financial stability. Although they’re not sure whether they’ll issue a central bank digital currency (CBDC), they’re considering a CBDC-based cross-border payment system.