Governments outside the US, including Singapore, are increasingly interested in Stablecoins who are not tied to the US dollar, despite their current limited liquidity, policy fireblocks Dea Markova told Cointelegraph in token2049.
In an exclusive interview, Markova described the competition with the dollar that pegged stablecoins as “all about sovereignty.” He compared the situation to earlier tightening between US governments and giant payments such as visas and Mastercard. “Now we see the same dynamic -new to Stablecoins – on a smaller size for now – but they are definitely emerging as a new arena for sovereign concerns,” he said.
According to Markova, the dollar pegged stablecoins operating in the European Union is “having a massive headache,” especially from the middle banks. “Even though they are following and controlled, they have a fixed push.”
The European Central Bank is the increasing pressure To accelerate the development of a digital euro, it cites concerns with the systematic effects of stablecoins associated with the dollar within the eurozone.
On April 29, Bank of Italy released a report that said the hope of the dollar Stablecoins’ in the hope of the US Treasury Bonds may increase the weaknesses at risk.
The Stablecoins’ Capital Capital is dominated by coins dollars, especially Tether’s USDT (USDT) and USDC of the Circle (USDC). According to Defillama, those two coins were combined for a $ 210.9 billion (or 87.2%) of the $ 241.8 billion total market cap for tokens. In fact, all 10 of the leading stablecoins are on the dollar.
For Markova, the situation is similar to previous conflicts between governments and US giant payments such as Visa and MasterCard. “Now we see the same dynamic -new to Stablecoins – on a smaller size for now – but they are definitely emerging as a new arena for sovereign concerns,” he said.
UAE early in ‘thinking of regulation’
Markova added that the United Arab Emirates are “certainly early in regulating” Stablecoins. He mentioned Abu Dhabi as an example, noting that emirate does not require stablecoin providers to be domicile or licensed locally, unlike the European regulation approach.
Markova explained that Abu Dhabi’s approach was to carry out its appropriate diligence in global stablecoins and decide if local exchanges could offer them. “(…) is a more reasonable method to provide access to local businesses in global liquidity and payment.”
In December 2024, USDT has been approved as a recognized virtual asset to Abu Dhabi, followed by circle Acceptance of approved regulation For the USDC on April 29. Meanwhile, the Abu Dhabi institutions is cooperating with the launch of a regulated dirham-pegged stablecoin.
Related: ECB EXEC changes pushing for Digital Euro to counter the growth of US Stablecoin
