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

Europe could pb the satellite successful processing the Internet of Things (IoT) by harnessing the imaginable of stablecoins, the Digital Euro Association argues in a caller report. Machine-to-machine (M2M) outgo is simply a field poised for growth, and stablecoins, successful particular, connection advantages for it, the study says.

There are increasing usage cases for M2M micropayments successful concern and location oregon bureau settings, specified arsenic handling charges for shipping containers and different fees on a logistics concatenation and pay-per-use fees for 3D printing, unreality retention and galore different services. Currently, these uses are hindered by their perchance overwhelming measurement and structural weaknesses, specified arsenic the request to furniture exertion programming interfaces (APIs).

Stablecoins could summation scalability and trim oregon destruct intermediaries, thereby alleviating the usability and information challenges that APIs present, according to the report. The usage of stablecoins would besides destruct quality error.

Related: $100M money aims to enactment the maturation of decentralized instrumentality economy

M2M payments besides connection Europe a accidental to instrumentality greater vantage of stablecoin technology, arsenic galore of its features are much applicable elsewhere:

“Outside of providing entree to DeFi markets, emblematic stablecoin usage cases person focused connected improving fiscal inclusion oregon reducing the costs of cross-border remittances, which whitethorn not beryllium truthful compelling successful a European context.”

The European Central Bank has fixed M2M payments debased precedence for a integer euro design, adjacent though “leveraging DLT exertion successful this discourse is being heavy explored.” Thus, stablecoin integration whitethorn beryllium applicable successful the agelong term:

“It is important that regulators foster maturation successful IoT and M2M payments, arsenic it is cardinal to maintaining the planetary competitiveness of the European integer economy.”

Regulators request to code a instrumentality individuality framework, stablecoin interoperability standards, guidance for unhosted wallets and different issues earlier the imaginable of stablecoins tin beryllium realized, the study says.

️ What are existent stablecoin marketplace developments? Short concepts connected #digitalmoney. Stay tuned for the upcoming!https://t.co/O99CUoVVOk

— Digital Euro Association (@DigiEuro) March 6, 2023