The European Union's regulatory framework called Markets in Crypto-Assets (MiCA) has been finalized and is set for a final vote on April 19, 2023. The MiCA regulations provide guidelines for handling cryptocurrencies and consumer protection, and divide crypto assets into different sectors, each subject to specific rules. Joachim Schwerin, principal economist at the Digital Transformation of Industry unit within the European Commission’s Directorate General for the Internal Market, Industry, Entrepreneurship and SMEs (DG GROW), sees the benefit of blockchain technology primarily in applications for the real economy. Schwerin does not share the European Central Bank's view that stablecoins pose a threat to financial stability and believes that society needs stablecoins in many different forms. The MiCA regulation could become a global regulatory standard, and Schwerin sees great interest from other countries, especially the United States.

(By VERONIKA RINECKER)