JPMorgan analysts predict that the EU's MiCA regulations, effective December 30, 2024, will boost the adoption of euro-denominated stablecoins, currently just 0.12% of the global market. The regulations will require stablecoin issuers to secure licenses and maintain reserves in European institutions, while banning algorithmic stablecoins. Institutions like Societe Generale and BBVA are already integrating compliant euro stablecoins, signaling a shift towards a more regulated and stable financial environment in the EU.
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