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US crypto heavyweight Ripple may be forced to launch its own euro-pegged stablecoin alongside some of its competitors in the cross-border money transfer space. These suggestions were shared by XRP and Ripple community activist Crypto Eri (@sentosumosaba on X) with her 240,000 subscribers.
New stablecoin design ideas must take into account some of the limitations provided by the MiCA regulations package. It not only limits the number of non-euro stablecoins to 1 million per day, but also introduces a capitalization of 200 million euros. Ripple’s potential USD-pegged stablecoin will soon reach these limits and will likely not be enough to meet the demand for cross-border remittances. Another Ripple/XRP community speaker @WKahneman stressed that these limits are “too low” for Ripple’s business and speculated whether the XRP coin could find its role in the new design.
It should also be noted that Ripple contributes to the Digital Euro Association (DEA) as a supporting partner to provide advice and infrastructure assistance to the ECB’s stablecoin initiatives. At the moment, euro-pegged stablecoins make up only a small part of the segment. For example, the largest euro-pegged stablecoin, Stasis Euro, has a capitalization of $137 million equivalent. Tether’s and Circle’s EUR-centric products boast a $70 million market cap combined, which is almost 2,000x lower compared to their USD-pegged assets.
Image: Bitcoinist
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