The European Union does not explicitly support USDC (USD Coin) or any other stablecoin, but there are several factors that make USDC more in line with European regulatory requirements than other stablecoins like USDT. This may explain why USDC is viewed more favorably by some regulators.
Reasons why USDC is aligned with EU guidelines:
1. High transparency:
• USDC is issued by Circle and Coinbase, two companies that operate transparently and provide periodic reports proving that the currency is 100% backed by cash reserves and short-term bonds.
• This transparency is in line with EU requirements to ensure the stability of stablecoins and protect consumers.
2. Regulatory Compliance:
• Circle, the company behind USDC, works closely with regulators and complies with local financial laws in the US and Europe.
• USDC supports Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements, which is in line with European priorities.
3. Close connection to traditional financial systems:
• USDC reserves are held in regulated banks and financial institutions, which gives confidence in the stability of the currency, which is what the European Union is looking for in stablecoins.
4. Willingness to cooperate with European laws:
• Circle has expressed its willingness to comply with EU legislation, such as the Markets in Digital Assets Act (MiCA), which sets strict standards for transparency and reserves.
5. Compatibility with economic trends:
• The European Union seeks to support digital innovation, including digital currencies that comply with regulatory standards and contribute to financial stability.
• USDC is often used in digital commerce and money transfers in a way that contributes to strengthening the economic system without threatening it.
Can this be considered official support?
There is no official EU support for USDC or any particular cryptocurrency, but the difference between the EU’s treatment of USDT and USDC reflects a greater interest in regulation and transparency, which are strengths of USDC.
summary:
The EU does not directly support USDC, but it does favor stablecoins that adhere to transparency and financial regulation, criteria that USDC meets better than other stablecoins like USDT.