Europe is becoming an ideal destination for traditional financial institutions that seek to develop on the cryptocurrency market.
The recent measures of Robinhood, Revolut and the European Central Bank (ECB) highlight a strong convergence between traditional finance and blockchain technology, unlocking new opportunities and challenges.
Europe becomes the essential market for cryptographic innovation
Robinhood, a well-known American trading platform, is preparing to launch a trading platform for American actions based on blockchain in Europe. This platform will allow European users to exchange token American titles, potentially built on blockchains like Arbitrum, Ethereum or Solana, in collaboration with a digital asset company. The movement takes advantage of the EU market framework in the crypto-sets (Mica), allowing Robinhood to offer 24/7 exchanges and improve liquidity.
Meanwhile, the Digital Bank Revolut intensifies its presence of cryptography on the market in the region. Revolut has teamed up with Lightspark, a former Paypal executive, David Marcus, founded to deploy Bitcoin payments via the Lightning network for users of the United Kingdom and the European Economic Area (EEE). This service uses Layer-2 technology to allow instant BTC transactions at low cost, meeting the growing demand for young customers.
Innovation of the central bank: the ECB deepens the involvement of cryptography
The European Central Bank (ECB) has created an innovation center to test the digital euro, with its proximity preparatory phase. In partnership with the COTI Blockchain Technology Company, the ECB is developing technology for digital Euro.
The project focuses on studying user preferences and exploring interesting use cases. The ECB plans to finalize the selection of suppliers for the digital regulation platform in euros (DESP) by 2025, paving the way for future deployment.
However, Stablecoin companies, on the other hand, do not benefit from these regulations. The CEO of Tether, Paolo Ardoino, warned that the regulation of the stablescoin of the EU could trigger a wave of local banks closings. He criticized the rules forcing stable transmitters to hold most of the reserves in uninsured bank deposits, creating significant liquidity risks, in particular with the European bank insurance ceiling at € 100,000.
“Many” European banks “will explode” in the “next years”. Josh Caplan cited the CEO of Tether
A favorable regulatory environment in the EU
These developments have important implications for the global financial market. The EU clairing regulatory environment, in particular the framework of the mica, promotes the confidence of financial institutions entering the cryptographic space.
Initiatives like the Robinhood platform and Revolut services demonstrate that financial companies consider cryptocurrencies as an opportunity to attract new customers, especially young generations. Meanwhile, the BCE digital euro ensures that central banks remain relevant in the digital age.
In conclusion, the clear regulatory situation of Europe opens important possibilities for traditional financial institutions to enter the cryptography market, from Robinhood and Revolut to the ECB. These movements shape the future of finance and stimulate the global adoption of cryptography. However, companies and regulators must meet regulatory, technical and security challenges to create a stable and effective digital financial ecosystem to ensure sustainable growth.
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