Stablecoins have plentiful machine-payment use cases in absence of euro CBDC: Report

Europe could lead the world in developing the Internet of Things (IoT) by harnessing the potential of stablecoins, the Digital Euro Association argues in a new report. Machine-to-machine (M2M) payment is a field poised for growth, and stablecoins, in particular, offer advantages for it, the report says.

There are growing use cases for M2M micropayments in industrial and home or office settings, such as handling charges for shipping containers and other fees along a logistics chain and pay-per-use fees for 3D printing, cloud storage and many other services. Currently, these uses are hindered by their potentially overwhelming volume and structural weaknesses, such as the need to layer application programming interfaces (APIs).

Stablecoins could increase scalability and reduce or eliminate intermediaries, thereby alleviating the usability and security challenges that APIs present, according to the report. The use of stablecoins would also eliminate human error.

Related: $100M fund aims to support the growth of decentralized machine economy

M2M payments also offer Europe a chance to take greater advantage of stablecoin technology, as many of its features are more applicable elsewhere:

“Outside of providing access to DeFi markets, typical stablecoin use cases have focused on improving financial inclusion or reducing the costs of cross-border remittances, which may not be so compelling in a European context.”

The European Central Bank has given M2M payments low priority for a digital euro design, even though “leveraging DLT technology in this context is being heavily explored.” Thus, stablecoin integration may be relevant in the long term:

“It is important that regulators foster growth in IoT and M2M payments, as it is key to maintaining the global competitiveness of the European digital economy.”

Regulators need to address a machine identity framework, stablecoin interoperability standards, guidance for unhosted wallets and other issues before the potential of stablecoins can be realized, the report says.

All Dutch and English crypto news!

Dit is hoe je kans maakt op 62 Bitcoin (hint: zoek een goed reisbureau)

Bij BLOX houden we wel van een goede marketingstunt. Een bedrijf genaamd LunarCrush heeft plannen aangekondigd om 62 Bitcoin te verstoppen op de maan. Of...

How Montana stands to benefit if its pro-crypto mining bill is approved

The Montana Senate recently passed a bill designed to protect crypto miners operating within the state. The proposed law, which is currently making its way...

zkSync Era launches with Uniswap and Sushi — First zkEVM on mainnet

Some of the biggest names in decentralized finance, including Uniswap, Sushi, Maker and Curve, are set to launch March 24 on zero-knowledge proof roll-up zkSync...

Narwhal Finance Secures $1M in Seed Funding Led by Animoca Ventures

Denmark, Copenhagen, 24th March, 2023, Chainwire Narwhal Finance Secures $1M in Seed Funding Led by Animoca Ventures Narwhal Finance, the decentralized cross-market perpetual trading platform built on...

Beste exchanges

Koop je crypto bij Bitvavo