MiCA

Governor of the Bank of Italy: Only digital euro can effectively manage cryptocurrency risks, MiCA has limited impact on stablecoins

ChainCatcher news, according to Cointelegraph, Fabio Panetta, the Governor of the Bank of Italy, pointed out in the annual report on May 30 that the EU's Markets in Crypto-Assets Regulation (MiCA) has had limited effects on promoting the adoption of compliant stablecoins. Since the regulation comes into full effect at the end of 2024, only a small number of electronic money tokens (EMT) stablecoins have been issued across the EU, and Italian regulators have not observed significant interest from local companies in issuing crypto assets.Panetta believes that regulatory rules alone cannot mitigate the systemic risks of crypto assets, and central bank digital currencies (CBDCs) are the key tool. He warned that foreign crypto platforms may lack transparency and risk control capabilities due to differing regulatory standards, posing a threat to the safety of funds for EU citizens, and that a global regulatory framework needs to be established through international cooperation.The digital euro project can meet the market's demand for secure and efficient digital payment tools while maintaining the anchoring role of central bank money. This view echoes the assertion of ECB Executive Board member Piero Cipollone—currently, dollar stablecoins hold a 97% market share, and the promotion of central bank digital currencies is urgent.One month before this statement was released, Tether CEO Paolo Ardoino refused to apply for MiCA licensing for USDT, citing "threats to the European banking system."

PancakeSwap: 4% annual deflation rate target is a non-binding cap, and the amount burned is dynamically adjusted based on trading volume

ChainCatcher message, the PancakeSwap team responded to the community regarding the CAKE 3.0 tokenomics proposal.Regarding the 4% annual deflation target, the 4% is based on data from the past two years. Deflation is not limited to 4% per year; the actual amount of destruction will be linked to trading volume, and if the protocol performs well, a higher deflation rate may be achieved. For the mCAKE and sdCAKE exchange issue, the team confirmed that a 1:1 exchange ratio will be maintained, and users need to operate through the original delegation platform.On the topic of holding incentives, the team pointed out that they will adjust the fee distribution, shifting part of the liquidity provider fees towards a buy-and-burn mechanism, which is expected to improve the destruction efficiency to 15%. They also emphasized that CAKE will still play a core role in governance, IF0, and other scenarios. In response to concerns about the efficiency of veCAKE emissions, the team believes that the current proposal can more effectively address core issues and avoid long-term drawbacks caused by short-term fixes.Regarding the issue of governance decentralization, the team stated that they will shift to a direct voting model based on CAKE holdings and consider introducing a delegation feature in the future. For geographical restrictions, the team explained that IF0 will remain open, while TGE has limitations due to compliance requirements from partners.Finally, the team committed to providing real-time destruction data dashboards to maintain transparency in emission decisions and ensure the smooth operation of the veCAKE system during the transition period. During the transition, the veCAKE system will continue to operate until the proposal voting is completed, ensuring a smooth transition.
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