Euro stablecoins lack real benefits, failing to attract traders: Report

Euro-pegged stablecoins are being overlooked by the market, with monthly spot trading volume dropping from $200 million at the start of 2024 to around $100 million recently, DL News reported, citing a Kaiko report. In contrast, dollar-pegged stablecoins generate over $1 trillion in monthly volume. The report explained that while the European Union's Markets in Crypto-Assets (MiCA) regulation was intended to provide regulatory clarity and a favorable environment for stablecoin issuers in Europe, traders still favor dollar-based alternatives. It added that Euro stablecoins currently fail to offer any tangible benefits. However, the report also noted some optimism for the future, citing the planned launch of Euro stablecoins by the European Banking Union.