On Twitter earlier this month, Finnish central banker Aleksi Grym asked the excellent question, “Is there any difference between stablecoins and e-money?”
E-money is a legal concept in many jurisdictions such as Europe and Singapore, but not in the United States. And Europe wants to regulate stablecoins as e-money, which could reduce the current functionality of stablecoins, such as the ability to earn interest.
Here the stablecoin focus is on 1-to-1 fiat-backed, such as Tether, USDC and the planned Diem USD.
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