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BBVA to launch Visa-backed euro stablecoin in 2025

BBVA to launch Visa-backed euro stablecoin in 2025

GrafaGrafa2024/10/05 05:30
By:Liezl Gambe

BBVA, a financial institution based in Spain, is set to launch its own stablecoin by 2025.

The bank is developing the project in collaboration with Visa, leveraging a program designed to help financial companies create stablecoins.

BBVA’s head of digital assets and blockchain, Francisco Maroto, explained that the project is currently in the sandbox phase and is expected to launch next year.

Although BBVA has not yet finalised the fiat currency that will back its stablecoin, it is likely to be linked to the Euro due to the bank’s significant presence in Europe.

Maroto emphasised that BBVA is not focusing on the U.S. market with this launch, at least not in the short term.

The bank's goal is to strengthen its digital presence in Europe while ensuring that the stablecoin aligns with regulatory standards.

BBVA selected Visa as its partner due to the company’s focus on regulatory compliance, which Maroto noted would make the development and rollout process more straightforward compared to other stablecoin alternatives.

Initially, the stablecoin will be limited to use within BBVA’s ecosystem, but the bank has plans for future interoperability between different financial institutions, similar to how existing stablecoins like USDT (CRYPTO:USDT) and USDC (CRYPTO:USDC) operate across multiple blockchains.

The stablecoin market has become increasingly competitive, but stablecoins backed by traditional financial institutions are still relatively uncommon.

BBVA’s move into the stablecoin space comes at a time when more traditional players are exploring digital currencies.

For example, Paypal introduced its PYUSD (CRYPTO:PYUSD) stablecoin in August 2023, which quickly reached a market capitalisation of nearly $700 million, despite facing regulatory scrutiny in the U.S.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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