Stablecoin

2024

Algorand

USDC

In the wake of the European Union’s new regulatory framework, Algorand is taking a leadership role in the European crypto market. They recently introduced two MiCAR-compliant stablecoins, $EURD and $USDCa.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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 <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f1ea-1f1fa.png" alt="🇪🇺" style="height: 1em; max-height: 1em;"> <a href="https://twitter.com/coinbase?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@coinbase</a> is delisting stablecoins in Europe that don’t comply with MiCAR regulations, like <a href="https://twitter.com/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$USDT</a> from Tether On <a href="https://twitter.com/hashtag/Algorand?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Algorand</a>, two MiCAR-compliant options are available to 450 million Europeans: 1. <a href="https://twitter.com/search?q=%24USDCa&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$USDCa</a> by <a href="https://twitter.com/circle?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@Circle</a> <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4b5.png" alt="💵" style="height: 1em; max-height: 1em;"> <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f539.png" alt="🔹" style="height: 1em; max-height: 1em;">Algorand is one of the few non-EVM chains natively… <a href="https://t.co/9kqEKjyY5e" rel="noopener noreferrer nofollow">pic.twitter.com/9kqEKjyY5e</a>— Algorand Foundation <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f40d.png" alt="🐍" style="height: 1em; max-height: 1em;"> (@AlgoFoundation) <a href="https://twitter.com/AlgoFoundation/status/1843294128769057170?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">October 7, 2024</a>
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Launching these&nbsp;<a href="https://www.thecoinrepublic.com/2024/08/25/cardano-algorand-eyeing-potential-decentralized-ai-partnership-details/" rel="noopener noreferrer nofollow">stablecoins</a>&nbsp;allows for fully regulated and secure digital asset options for European users. This takes place under the Markets in Crypto Asset Regulation (MiCAR). This comes as the European Union steps up its efforts to tailor the digital asset rules for stablecoin issuers.
It ensures a more robust and transparent framework for digital asset transactions amongst its member states.
<h2 class="wp-block-heading" id="h-european-algorand-users-can-now-use-micar-compliant-stablecoins">European Algorand users can now use MiCAR-compliant stablecoins</h2>
Algorand revealed the launch of $EURD and $USDCa, which fully conform to MiCAR regulations. $USDCa, a compliant version of the popular USDC stablecoin issued by Circle, is equally compliant with the European regulatory framework.
The $USDCa token has already raised more than $114 million in circulation, and demand isn’t slowing down. Users are also looking for compliant alternatives to non-regulated tokens.
The Dutch company Quantoz issues $EURD, a fully regulated digital version of the Euro. With a 1:1 peg to the Euro, it offers zero transfer fees and is a great option for microtransactions and everyday use.
Both of those stablecoins are built to meet European citizens’ demand for secure, compliant, and scalable digital assets while navigating the fast-changing crypto landscape.
<h2 class="wp-block-heading" id="h-algorand-s-technical-advantages-and-support-for-usdc">Algorand’s Technical Advantages and Support for USDC</h2>
The Algorand blockchain is one of the most critical strengths due to its technical infrastructure, which comprises fast transaction finality, low fees, and broad exchange support.
As one of the few non-EVM (Ethereum Virtual Machine) blockchains natively supporting USDC, $USDCa becomes an appealing choice for users seeking dollar-based stablecoins. Its rapid transaction speeds and low costs suit retail and institutional users well.
Algorand’s $USDCa is a MiCAR-compliant stablecoin integrated into the&nbsp;<a href="https://www.thecoinrepublic.com/2024/05/24/algorand-fires-shots-at-giants-like-ethereum-solana-and-bitcoin/" rel="noopener noreferrer nofollow">Algorand blockchain</a>. That makes it more popular compared to delisted stablecoins that served as alternatives to them.
As part of Circle’s partnership with Algorand, $USDCa is protected by the highest levels of security and transparency. It is a precept that the European Union and other European regulators emphasize.
On top of that, exchanges such as Coinbase and Binance list $USDCa on their respective blockchains, therefore increasing both its liquidity and user accessibility for European users.
Unlike other Euro-pegged stablecoins, the $EURD stablecoin backed by USDa is fully regulated by the Dutch Central Bank. This makes $EURD an acceptable choice for European users who want to have Euro-backed digital assets in view of the growing number of Euro-based stablecoin in the region.
<h2 class="wp-block-heading" id="h-micar-regulations-and-the-impact-on-stablecoin-market">MiCAR Regulations and the Impact on Stablecoin Market</h2>
One of the most important regulations for the market is the European Union’s Markets in Crypto-Assets Regulation (MiCAR). It includes strict requirements for stablecoin issuing and represents a new standard for the market.
MiCAR states that European Economic Area (EEA) stablecoins must have at least one EU member state e-money license.
These strict rules have resulted in a number of non-compliant stablecoins having no choice but to exit the European market. It also led to the delisting of those non-compliant coins from some of the biggest exchanges.
The post <a href="https://www.thecoinrepublic.com/2024/10/08/algorand-excelling-with-micar-compliant-stablecoins-why-and-how/" rel="noopener noreferrer nofollow">Algorand Excelling With MiCAR-Compliant Stablecoins: Why and How</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.

Algorand Excelling With MiCAR-Compliant Stablecoins: Why and How

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