Europe Rolls Out New Rules for Stablecoins: What MiCA Means for Your Crypto
If you hold or use stablecoins, or are just interested in crypto, understanding MiCA is becoming essential. Let’s break down what stablecoins are, what the new EU rules demand, and how this might affect users, crypto companies, and the broader market.
What Are Stablecoins, Anyway?
Before diving into the rules, let’s quickly refresh what stablecoins are. Unlike Bitcoin or Ether, whose prices can swing wildly, stablecoins are designed to hold a steady value. They achieve this by being “pegged,” or linked, to a real-world asset, most commonly a major currency like the US dollar or the Euro.
Think of them like digital tokens that represent traditional money. For every one stablecoin token issued (like a USDT or USDC, both pegged to…
