Gabriele S.

𝗔 𝗦𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻 𝗣𝗿𝗶𝗺𝗲𝗿: 𝗠𝗼𝗻𝗲𝘆 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗔𝗴𝗲 🪙 Every week there’s another major stablecoin headline: 🌎 BVNK now live across all 50 US states in addition to the 129 countries it's already supporting 🔗 Circle launching Arc, its own Layer-1 chain 🚀 Stripe announcing Tempo, its blockchain project The stablecoin train has left the station and unlike the speculative crypto boom of a few years ago, this time it’s about real adoption with traditional cards as the bridge. Visa, Mastercard, PayPal, and even JPMorgan are now putting stablecoins at the core of their strategies. Although some will consider it overdue, now felt like the right time to do a primer and give it the full Fintech: Under the Hood treatment, with a signature diagram, handy analogies, and a some very relevant movie references (Star Wars fans, rejoice). 𝗦𝘂𝗺𝗺𝗮𝗿𝘆 𝗮𝗻𝗱 𝗞𝗲𝘆 𝗘𝘅𝗰𝗲𝗿𝗽𝘁𝘀 👉🏽 The history of money (from pelt trading to credit cards) and why stablecoins are the logical next upgrade 👉🏽 What stablecoins actually are (and how they differ from Bitcoin) 👉🏽 The “Stablecoin Layer Cake” explained (Layer 0 → 3) 👉🏽 Key players: Circle, Tether, Paxos, BVNK, Stripe, PayPal (and their TradFi counterparts) 👉🏽 Use cases beyond remittances: B2B trade settlement and payroll for the global gig economy 👉🏽 Why “credits” in science fiction may not be that far from where we’re headed 🗣 “Stablecoins are the biggest upgrade to money since the invention of the credit card.” Stablecoins are not without challenges. Fraud, transparency, regulation, and interoperability are still hurdles and I touch on them too. If you’re deep in the space, consider this a refresh with some new angles. If you’re new to stablecoins, by the end you’ll know exactly what they are, who the big players are, and why they matter. 🔗 Read the full article here: https://lnkd.in/ede8eewQ As always, I'd love to hear what you think, whether I missed any key stablecoin enablers, what you thought of the sci-fi stablecoin reference and anything else you found interesting. Philip Benton Emma Mayer Sandra M. Dharmesh Mistry Leda Glyptis PhD Marcel van Oost Efi Pylarinou Panagiotis Kriaris Sanjeev Kumar Alistair Cotton Monica Jasuja Nik Milanović #Fintech #Payments #Stablecoin

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🧩 Taxonomy of Euro Stablecoins Under MiCA 🇪🇺 The euro stablecoin market is undergoing a transformational shift as issuers race to meet the compliance requirements of the EU’s Markets in Crypto Assets Regulation (MiCA). As of December 2024, Circle’s EURC leads by market cap, but the evolving regulatory landscape is reshaping the competitive dynamics of euro stablecoins. 1️⃣ Centralized Issuers (Fiat-Backed): EURC by Circle dominates, thanks to regulatory maneuvering and deep liquidity pools. However, critics argue that EURC’s growth is driven more by Circle’s positioning rather than organic market demand. Banking Circle’s EURI offers low capital cost advantages, but its adoption remains slow. 2️⃣ Decentralized Issuers (Crypto-Backed): Angle’s EURA stands out as the largest decentralized euro stablecoin, with strong DeFi integrations. However, MiCA enforcement could pose a risk to crypto-backed models unless they adapt to new compliance frameworks. 3️⃣ Bank-Issued Stablecoins: SG Forge’s EURCV entered the market with ambitious plans but faces adoption challenges. Will traditional banks accelerate the pace of innovation, or will DeFi-native solutions outpace them? ⚖️ MiCA: Friend or Foe for Euro Stablecoins? The EU’s MiCA framework promises regulatory clarity and opens a vast single market of 450 million consumers. But will it foster innovation and competition or stifle the decentralized ecosystem? MiCA’s strict requirements on reserves, licensing, and disclosure create both opportunities and challenges for euro stablecoin issuers. Compliance-focused players like Circle seem well-positioned, but decentralized projects must adapt quickly to remain relevant. 💬 What do you think? Will MiCA accelerate euro stablecoin adoption, or will it hinder innovation? Let’s discuss!

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💡 Stablecoins In Cross Border Payments: The Real 99% Isn’t About Fees - It’s About Finality Several report claim that regulated stablecoins could cut cross-border payment costs by up to 99% 😍. That headline sounds huge but the real story lies elsewhere Today, most of what we call “cost” in cross-border payments isn’t a transaction fee, it’s the friction tax: 💸 Trapped liquidity in nostro/vostro accounts ⏱️ Cut-off times and daylight risk 🔍 Endless compliance hops and reconciliation delays According to Bank for International Settlements – BIS, International Monetary Fund, and the G20 roadmap, these non-price frictions are the true culprits behind high remittance costs. Enter stablecoins 🥷🏼 — not as a magic wand 🪄 for FX spreads, but as a tool 🔨 for instant, atomic settlement. With properly regulated reserves and what we refer to as bank grade governance, stablecoins can remove multi-day settlement risk and free up liquidity instantly 🚨 That’s where the “99%” lives 🚨 It’s also why central banks from the BIS to the European Central Bank are paying attention: the efficiency gains are real, but only if regulation enforces sound money principles such as singleness, resilience, and redeemability (the boring 🥱 but important stuff) So, the next time you see “99% cost reduction,” read it as “99% less settlement friction”. The prize isn’t cheaper FX; it’s instant, risk-free finality - the quiet 🤐 revolution stablecoins can deliver. #DigitalAssets #Stablecoins #CrossBorderPayments #BIS #FutureOfFinance

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