The European Union has implemented the Markets in Crypto-Assets Regulation (MiCA) which establish a regulatory framework that tries to mitigate risks to EU monetary autonomy associated with the growing dominance of U.S. dollar-backed stablecoins

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In recent years, the European Union has strategically addressed the rise of U.S. dollar-backed stablecoins through its Markets in Crypto-Assets Regulation (MiCA). Simultaneously, the European Central Bank (ECB) has been delving into the development of a digital euro, aiming to preserve the currency’s significance and authority in an increasingly digital world