European Union policy encourages the dominance of the US dollar ⋅ Echo world encryption
The following is the guest and opinion of ENEKO Knörr, CEO and co -founder of Stabolut.
The Organization of the European Union markets in the assets of encryption (MICA) aims to demonstrate clarity and safety within the encryption scene. However, it is irony, that its excessive restricted position on the euro -euro stablecoins can unintentionally believe in the US dollar’s continuous domination of global financing.
Stablecoins has become indispensable in the global digital economy, allowing fast, transparent and non -border transactions. currently, More than 99 % of the Stablecoin market Die to the US dollar. Instead of challenging this monopoly, Mika in Europe It makes it increasingly difficult For the euro -backed stablecoins to gain a large traction.
While we publicly declare, “We don’t want stablecoins, because we want to pay our CBDC.” He would have faced severe criticism, Mika intelligently achieved the same result beforeduty Such strict regulatory restrictions that become euro stablecoins are in practice.
The effect is an expert but it is clear-Mecca effectively suppresses the innovation of private Euro-Stablecoin in favor of the central bank’s digital currency. This regulatory environment unintentionally provided a great advantage for USD-Stablecoins, Enhancing the position of the US dollar As the currency is the initial treatment in the world. Despite accounts about the decrease in the dominance of the dollar, Stablecoins nourishes the Renaissance For the US dollar, it includes deeper into the global financial fabric.
Interestingly, this happens at a time when the Brexes and even the European Union itself seek to challenge the dominance of the US dollar in global markets. Ironically, however, as global trade is increasingly moving towards Blockchain -based transactions, Stablecoins increases significantly.
The strong Stablecoins supported by US dollar will play a pivotal role in ensuring that the dollar-or even expansion-on the global market share.
On the other hand, Europe’s ambition to raise the euro through the Biological Diversity Agreement lacks the entire mark. The European Union believes that the euro CBDC will succeed and significantly enhance the global influence of the euro not only misleading but naive.
A CBDC It may seem innovative on paper, but history indicates that the government -led initiatives are fighting to suit creativity, efficiency and the ability to adapt to the innovation of the private sector. Moreover, CBDCs, by nature, raises concerns about privacy, government transgression, and consumer independence.
It is really sad to realize that Europe lacks this critical point.
The United States seems to be clearly understanding this dynamic. By resisting the temptation of the federal CBDC and instead it reinforces private Stablecoins, American organizers guarantee that innovation remains fast, depends on the market, and competitive globally.
Europe’s mistake with Mika is not just a lost economic opportunity; It is a strategic mistake that can have deep geopolitical effects. By strangling Euro-Stablecoins, Europe is unintentionally enhancing the domination of the dollar at the moment when Euro-Stablecoin can provide global acceptable and meaningful diversity.
While policy makers may think they protect the financial system, they actually build an organizational trench about the lack of connection. With the acceleration of the adoption of encryption worldwide, capital, talent and innovation flow to the judicial states that adopt experimentation. Cautious abuses in Europe risk converting them into a spectator in the next era of financial infrastructure – which participates from side lines where others write rules.
If Europe is serious in the global euro position, it must reconsider its approach. The future of money is likely to be formed by those who can innovate instead of those who restrict it. Unfortunately for Europe, Mika may turn into the best thing to happen to the US dollar.
Pamphlet Mika’s mistake: European Union policy encourages the domination of the US dollar First appear on Cryptoslate.
