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December 29, 2024 11:30 AM
As demand for blockchain-based payment systems rises, banks in Europe and the U.S. are intensifying their efforts to issue stablecoins, seeking to rival crypto giants like Tether Holdings.
In Europe, the imminent implementation of the Markets in Crypto-Assets (MiCA) regulation on December 30, 2024, provides a clear framework for stablecoin issuers, requiring licenses and proper reserve management.
Meanwhile, global payment leader Visa is working with banks like BBVA to develop blockchain-powered stablecoin solutions. Visa is also negotiating with institutions in Hong Kong, Singapore, and Brazil to expand these offerings.
In the U.S., banks such as JPMorgan Chase are testing blockchain payment systems, with its JPM Coin being used for internal transfers. However, unlike traditional stablecoins, JPM Coin lacks open wallet accessibility, limiting its broader adoption.
Simultaneously, Central Bank Digital Currencies (CBDCs) are being developed globally and could compete with bank-issued stablecoins in the future, especially for wholesale payments.
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