Stefan Hoops emphasized that Deutsche Bank-owned DWS will launch a euro-denominated stablecoin that will be regulated by the German Federal Financial Supervisory Authority (BaFin). Hoops said that DWS expects interest in the new asset from different types of clients:
“In the short term, we expect demand from digital asset investors, but in the medium term, we expect broader demand, for example from industrial companies working with Internet of Things payments,” he said.
Let us recall that BaFin was generally critical of cryptocurrencies and called for global regulation of the industry. However, the agency is more loyal to stablecoins, considering them more stable assets than other digital currencies. Representatives of the regulator declined to comment on the launch of a new stablecoin from Deutsche Bank.
Earlier research by the German Central Bank (Deutsche Bundesbank) showed: The country’s citizens are “open to the idea of a digital euro” but fear that using a state-owned stablecoin would be an invasion of privacy.
Source: Bits
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