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Tether, the issuer of a stablecoin pegged by US dollar, USDT is facing <a href="https://news.todayq.com/usdt-issuer-tether-challenges-un-report/" target="_blank" rel="noopener noreferrer nofollow">hideous claims</a> pushed by the United Nations. USDT issuer still responded to the report published by the UN for its alleged inclusion in illicit activities. Amid this tussle, experts suggest that Euro-pegged stablecoins are poised for growth ahead. Euro-pegged stablecoins set to rise? 
According to reports, Euro-pegged stablecoins will witness a major increase in its circulation volume over the next few years. Tempo France suggests that these stablecoins could capture a 0.5% share in the total Euro circulation within the next 3 years. However, it could potentially reach 1% over the next 5 years, it added.
It is important to note that several key factors add to the anticipated growth of <a href="https://news.todayq.com/solana-to-launch-circle-based-euro-stablecoin/" target="_blank" rel="noopener noreferrer nofollow">Euro-backed stablecoins</a>. The effects of new European regulations governing digital assets boost crypto assets and the digitalization of payments in the European Union. Meanwhile, the United States based firms are facing challenges due lack of guidance.
In response to the changing landscape, European companies may shift from USD-backed stablecoins to Euro-pegged ones. While USD-backed stablecoins currently dominate the market, Euro-pegged operations are expected to gain traction in the EU in 2024. CBDC’s to lead the way? 
The rapid development of Central Bank Digital Currency (CBDC) initiatives is identified as another contributing factor. As CBDC initiatives progress, they are expected to positively impact stablecoins in Europe. This will potentially become a component of Decentralized Finance (DeFi). With regulatory frameworks in place, CBDCs may inspire consumers to opt for decentralized coins.
Tempo anticipates a surge in EU financial institutions implementing blockchain in their systems. Experts expect it to grow by up to 30% in the next year. As Euro-backed stablecoins play a crucial role in blockchain settlements, a potential deficit in the second quarter could prompt companies to meet demand by introducing new coins.
Europe based company expects the emergence of 5 to 6 promising Euro-backed stablecoins in 2024. Their volumes can record an impressive growth in Europe. The payment market is also predicted to witness a surge in projects bridging traditional and digital assets, encouraging the adoption of Euro coins. Integrations between traditional businesses and digital assets are anticipated to increase by 50% compared to 2023.
The interest from financial institutions in investing in digital assets is rising, driven by the potential for higher yields and a broader range of DeFi instruments. The total investment portfolio of banks and investment companies in digital assets is expected to increase from 15 to 25 percent in 2024.
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Euro-pegged stablecoins set to gain traction amid Tether’s USDT controversy

Todayq News

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