Euro Stablecoin Volumes Halved to $100M; Visa Faces FTC Debanking Alert
Monthly euro stablecoin volumes slumped from $200 million to $100 million while dollar-denominated tokens exceed $1 trillion, underscoring weak demand despite MiCA’s 2023 framework and potential impacts on Visa’s planned offerings. The FTC also warned payment processors against debanking practices, highlighting regulatory risks for Visa’s merchant services.
1. Euro Stablecoin Market Decline
Monthly euro-backed stablecoin spot volumes plunged from $200 million in early 2024 to around $100 million this year, compared with over $1 trillion for U.S. dollar tokens in a $315.8 billion market. MiCA’s 2023 rules have yet to drive adoption, prompting issuers like Tether to stop minting euro tokens and spurring a consortium of 12 banks to plan a new euro-denominated stablecoin release.
2. FTC Debanking Warning
The FTC issued warnings to payment processors against debanking practices, cautioning firms on closing customer accounts without proper justification. This alert spotlights compliance challenges for networks such as Visa, which could face increased scrutiny over merchant onboarding and risk-management protocols.