The European Central Bank (ECB) announced on Tuesday its decision to allow companies such as USDC stability station Circle to become part of the euro system.
This decision will provide non-bank payment services suppliers, including payment entities and e-money entities, starting from the end of January 2025 (which can issue Stablocoins and protect themselves under the MICA Act). Direct access to payment systems As you know, the central bank of the euro system.
Known, or single euro payment area is an euro payment area that allows euro transfers and payments between European Union countries at no additional cost, allowing citizens and businesses to operate as if they were in a single country. Meanwhile, Tips (Target Instant Payment Settlement) is a service that promotes instant payments and real-time, allowing immediate liquidation 24 hours a year.
Non-bank payment service providers are companies that provide payment and transfer methods. Traditional bank intermediary is not required. Meanwhile, electronic money entities are permitted to issue electronic money and process payment accounts, including companies that issue stubcoins such as USDCs under MICA regulations.
Circle, or more precisely, its product, USDC Stablinin, has been recognized by the French Central Bank since September 2024, as reported by Cryptonoticias under Mica regulations.
They must meet certain criteria
To integrate into companies like Circle, Eurosystem They must meet some conditions according to the ECB documentation. These will provide a statement confirming the establishment and management of the technical infrastructure necessary to connect to payment systems, providing support information requested by the central bank, implementing appropriate security management, and ensuring compliance with requirements established in national law.
This document will come into effect on April 9, 2025. This date is provided in Article 7, indicating that the decision will apply as of that date after its publication in the official European Union Gazette.
Patrick Hensen, director of EU Strategy and Policy, confirmed that the company will become part of the euro system. In X, Hensen pointed out that this “can reduce traditional banks’ reliance on liquidation in contracted currencies, create a more level playing field, and promote competition and innovation in EU payments.”
Hensen also said that businesses are now able to maintain liquidation accounts, but the ECB has made it clear to the central bank. Protective accounts cannot be provided For client funds. He further stated that access requests should be opened in the second quarter of 2025 (June).
Integrating USDC into systems of knowledge and tips means that European citizens will be able to use this Stablecoin for transactions that previously required physical or digital euros supported by traditional banks.
This is beneficial. This is beneficial because it increases transaction flexibility and speed and reduces transaction costs. Provides stable alternatives for payments In an economic environment where cryptocurrency volatility has become a hindrance.
For example, citizens can use SEPA to pay service fees directly using USDC. There is no need to convert to euro, It could simplify the process and cut down on committees. Furthermore, immediate payments with USDC tips are ideal for emergencies and international trade that allow for immediate and secure transactions between EU countries.
This decision not only encourages greater integration of innovative financial technologies within the EU payment structure; It also encourages a more comprehensive and competitive financial ecosystem.
(tagstotranslate) Cryptocurrency