Stablecoin Adoption in Europe [future perspective]
What a year ago millions could have just dreamed of, is about to happen in the nearest future. With the beginning of stablecoin, the world has started to experience a new era where cryptocurrency can be integrated into daily matters in a safe and effective way.
The first big cryptocurrency introduction to the daily life of Europe took place in Prague in 2010, when Marek Palanius got involved in Slush project. It was the first such huge initiative in Eastern Europe which led to significant results in the future.
The Czech Republic is known for its law flexibility, and the crypto market felt it as well. In spite of the fact that stablecoin is considered as illegal payment method, the Czech government does not have any penalty regulations for using it. A few to know, the first cafe with bitcoin transaction tolerance has been opened in Prague as well.
Even if such huge projects as Libra still remain rejected by the international community, some smaller implementations are going to appear in Sweden very soon. A couple of years ago this Scandinavian country became cashless very fast. Today you can pay by credit card everywhere and for everything.
Well, now the new implementation is going to start. The Swedish government has announced the launching of a new project – the creation of crypto krona, with the main goal to stop using any cash by the end of 2023. The whole transaction system is going to be based on blockchain technology in order to ensure payments’ security and transparency.
Swedish society has shown a very high level of acceptance towards this implementation, the same as Central Riskbank and entrepreneurs. The sample of new digital krona will see the world in 2021.
Info update: Currently Swedish Central Bank is running the sample of e-krona based on the R3 Corda distributed technology. The research upon switching the country’s payment system to digital currency will be completed by November 2022.Information source: Coindesk
Germany regulations towards cryptocurrency
Germany has made an even bigger step forward and now officially become the first European country that introduced regulations regarding cryptocurrencies into its legal system.
Recently, German BaFin has registered Bitcoin as a new instrument for handling financial transactions. By providing such an initiative German government benefits from numerous aspects.
First of all, the legitimization of crypto transactions carried out with the help of stablecoins will prevent money laundering and make the county’s financial market more transparent and controlled. Second of all, the absence of illegal currency trade will bring additional income to the budget.
The future adoption of stablecoin
Over last year stablecoin technology has proved its usefulness and necessity. A lot of company owners, such as Sergey Onyshchenko, the founder of Blaize, European blockchain solutions developer, predicts a significant future for stablecoins and intensively build successful solutions in this industry.
Here is what he thinks about the future perspectives of stablecoin application:
“At the moment, fiat currencies are flatly circulating through territories, so that people in Ukraine, for instance, cannot use another currency. Stablecoins make a huge competition to fiats, building a new paradigm. It lies in the fact that the issuer of fiat-backed stablecoin will have to fight for its client in contrast to the situation we experience nowadays. Generally, the future development of stablecoin will constitute a tireless competition between currency issuers and complete commercialization of this process. In such cases, the issuers can be represented by different entities: corporations, capital holders, or even states. In the last example, the stablecoin currency will have to be backed by the state foreign reserves”
The example of MakerDAO has shown that it is possible to use the currency issued by the non-governmental, decentralized structure, and large investment funds will support this idea, so we can experience more cases like Libra (Facebook money) in the nearest future.
Some European countries have already admitted the power of digital currency and became pioneers of its introduction to the traditional financial systems, yet the best is still to come. One believes in the huge potential of certain stablecoin mechanisms, non-collateral in particular.
The contribution it can make to national financial institutions and businesses is impressive and of course, needs further development, but there is still a huge place for the future discovery and options of stablecoin implementation in different ways.