Director of EU Strategy and Policy at Circle, Patrick Hansen, recently highlighted the potential presented in payment guidelines for stablecoins in the region.
The executive believes that a review of EU payment rules would bring benefits to stablecoins, in addition to guaranteeing issuers access to central bank payment-related systems.
In a post on App X, Hansen wrote:
“In the context of the upcoming review of EU payments rules (PSD/PSD3), some important changes are taking place in the EU payments sector. European Commission Head of Unit (Retail and Payments) Ducoulombier: “We propose to modify the Settlement Purpose Directive (SFD) to allow non-banks to access payment systems. We also propose solutions to the recurring ‘risk reduction’ problem faced by some Payment Institutions (PIs) and Electronic Money Institutions (EMIs), which should substantially improve their ability to open and maintain bank accounts.”
For him, “this means that stablecoin (EMT) issuers will be able to access central bank payment systems, safeguard funds with the central bank and should have fewer problems opening bank accounts. Good development for innovation and competition in payments in the EU.”
In the context of the upcoming review of EU payments rules (PSD/PSD3), some key changes are coming to the EU payments sector. EU Commission head of unit (retail & payments) Ducoulombier:
“We propose to modify the Settlement Finality Directive (SFD) to enable non-banks to access…
— Patrick Hansen (@paddi_hansen) September 19, 2023
It is worth remembering that Jeremy Allaire, co-founder and CEO of USDC Circle issuer, expressed his belief that stablecoins pegged to the yuan (Chinese money) could be a better alternative in relation to the Chinese government’s objective of internationalizing its currency, compared to with central bank digital currencies (CBDC).
In a recent interview with the South China Morning Post (SCMP), Allaire said:
“If eventually the Chinese government wants to see the RMB used more freely in trade and commerce around the world, it may be that stablecoins are the way to do that more than central bank digital currency.”
However, Circle’s CEO highlighted that, even considering stablecoins superior to CBDCs, the two systems are complementary.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.