German start-up Unstoppable Finance will introduce the first regulated DeFi-bank in Europe, as well as its own cryptocurrency - stablecoin. This stablecoin will be fully compliant with European Union (EU) MICA regulations.
Peter Grosskopf, co-founder and CEO of Unstoppable Finance, stressed that the traditional banking system is now becoming increasingly unstable. He stated that with the advent of stablecoins, money can easily be transferred around the clock in seconds with complete transparency; thus, it is time to take advantage of this important advancement and rebuild finance as we know it. He said the Euro-backed stablecoin would be a "tokenised form of electronic money" that would serve as a bridge between traditional banking and a decentralised economy.
The start-up plans to create a non-custodial Ultimate cryptocurrency wallet, which in the future will directly connect users to yield farming protocols as well as decentralised exchanges.
This news has been welcomed by many traditional European banks, which until now have had only limited access to the cryptocurrency sphere. The Basel Committee on Banking Supervision has taken note and is calling for capital requirements for banks wishing to interact with Bitcoin (BTC) and stablecoin by January 2025.
Next year, MICA rules will come into force that do not apply to banks and the cryptocurrency sector. These new rules suggest that the European Banking Authority will be able to monitor the use of stablecoins. In addition, cryptocurrency transfers will also come under supervision. From 2025, if a transfer from a cryptocurrency exchange to a private wallet exceeds 1,000 euros, it will have to be reported.