Learning the friendly way

With billions of credit, debit and prepaid cards in circulation around the world, they are undoubtedly a permanent fixture in the payments sector. According to Statista, over the two-year period from 2019 to 2021, the total number of credit, debit, and prepaid cards globally increased by 2 billion, reaching 25.2 billion cards, with this volume projected to grow by 21% between 2021 and 2025 before stabilising.

Further on this, the payments landscape has evolved to include a wide array of digital payment methods beyond just traditional cards. These include enabling payments via SMS on mobile phones, "Buy Now, Pay Later" financing schemes, mobile wallets, contactless payments leveraging Near Field Communication technology, QR code-based transactions, and cryptocurrency payments.

As these trends continue developing, a prominent feature on the landscape is customizable white-label cards, which while tailored to the unique needs of the client, can incorporate any of these methods mentioned above. Let’s explore the white-label card market. 

What is a white-label card?

To recap, white-label products and services are made by a third party but sold under a distinct brand, allowing that brand to seamlessly use the infrastructure already established by the third party. This practice has expanded beyond retail into the financial sector, enabling businesses to offer their own branded payment cards.

With white-label card issuing, a company can issue cards under its own branding, while the underlying functionality and processing are provided by third-party services. This allows the business to introduce branded cards without the complexity of obtaining a separate issuing licence required in the regulated financial sector.

As an example, in 2023, Bitfinex, a prominent cryptocurrency exchange platform, partnered with Tap to offer a white-label prepaid card solution. This allowed Bitfinex to provide its clients with a branded payment option while generating a new revenue stream, leveraging Tap's underlying financial infrastructure.

The many white-label card solutions

White-label payment cards come in various forms to suit diverse financial needs:

Debit cards 

Provide access to bank account funds for daily transactions and ATM withdrawals.

Credit cards 

Allow borrowing up to a limit, similar to traditional credit.

Prepaid cards 

Loaded with a set amount for budgeting and spending control.

Virtual cards 

Exist only digitally for secure online payments.

Payroll cards

Where employers directly deposit wages, eliminating the need for cash or direct transfers.

Expense cards

With specific purposes and spending limits or restrictions, like for business expenses.

The advantages of white-label cards for consumers

While the benefits of white-label cards are typically associated with businesses, there are several advantages for the consumer, too. 

• Customised perks

White-label cards provide tailored rewards, discounts, and exclusive offers to enhance the shopping experience and deliver savings.

• Streamlined shopping experiences

These cards can streamline purchases within specific stores or brands, making transactions convenient and focused on preferred retailers.

• Improved credit access

Consumers with diverse credit profiles can often access white-label cards, enabling them to build or improve their credit history through responsible usage.

The advantages of white-label cards for businesses

White-label card issuing provides businesses with several key advantages:

• Distinctive branding

Cards can be tailored to match the business's branding, enhancing visibility and customer recognition.

• Quick market entry

Partnering for white-label issuance enables a quick introduction of new card offerings, establishing a market presence before saturation.

• Reduced development costs

Businesses can offer branded cards without the expense of developing a full card program from scratch, instead leveraging already established payment infrastructure. 

• Increased customer engagement

Branded cards with rewards, discounts, or exclusive benefits can foster loyalty and repeat business with new or established customers.

• Seamless operations

By tapping into an established infrastructure, businesses ensure seamless functionality, security, and dependability for cardholders.

Industries utilising white-label cards

White-label card issuing has emerged as a versatile solution, catering to the needs of diverse industries, from neobanks and retailers to gig platforms and fleet management.

Retail and E-commerce

White-label credit programs allow retailers to provide customers with relaxed payment terms, encouraging higher spending through the convenience of deferred payment. Customers often earn loyalty rewards, fostering repeat business. Retail giants frequently offer private-label credit cards, such as Amazon's virtual cardless solution and its Prime Store Card.

Neobanks

Many neobanks have adopted white-label card solutions, like Revolut, enabling seamless multi-currency spending, especially for international travel. Revolut empowers customers with full control over their banking experience, offering a choice between NFC and magnetic stripe payment preferences.

Corporate cards

For large organisations, white-label corporate credit cards integrated into expense management programs can streamline processes, eliminating the need for manual tasks like expense reporting and payroll management.

Fuel cards for fleets

Fleet white-label cards are specialised payment solutions tailored for businesses operating vehicle fleets. These cards, often offered in collaboration with financial institutions, streamline expense management and provide benefits like fuel discounts.

Gig economy

As gig platforms continue to rise, integrating white-label card solutions has become a notable advancement. Fiverr, a freelance services platform, has embraced white-label cards to enhance user experience, enabling swift transactions and access to earnings.

The current state of the white-label card sector

The white-label card market is experiencing substantial growth and innovation, presenting significant opportunities across industries. These white-label solutions, including debit, credit, and prepaid cards, enable companies to customise payment gateways and card products as their own, without the overhead of building infrastructure from scratch.

Businesses like e-commerce platforms, SaaS providers, financial institutions, and online marketplaces commonly benefit from white-label cards. These offerings allow companies to strengthen their brand, enhance customer loyalty, and unlock new revenue through tailored loyalty programs and rewards.

A key advantage of white-label cards is their adaptability. They support various payment methods, accommodate international transactions, and integrate seamlessly with existing systems, providing a streamlined customer experience. This flexibility extends to virtual cards, which are gaining popularity for their ease of use in digital payments.

In summary, the white-label card sector offers a robust platform for businesses to expand payment solutions with minimal infrastructure investment, enhancing their service offerings and customer engagement.

For more information on issuing your own white-label card, you can learn more about Tap’s business services on the website here and contact Tap here. 

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Crypto is never short on surprises, and staying true to its word 2024 has delivered a wild new trend: PolitiFi coins. These politically-themed digital assets have managed to give the election a run for its money in terms of surprises, breaking onto the scene with an eye-popping 782.4% growth in just 8 months. 

To put that into perspective, “traditional” meme coins only managed 90.2% growth in the same time. Political views aside, one thing we can all agree on is that there is never a dull moment in the crypto space. 

What is PolitiFi?

These politically-themed meme coins draw inspiration from famous political figures and events, often in a playful or satirical way. But most of these coins are not officially linked to any real politicians. Much like other meme coins, their value is totally speculative, riding the waves of community buzz and whatever’s trending in the news.

From zero to $2.1 billion

What started as a seemingly niche intersection of politics and crypto has grown into a substantial market worth $2.1 billion as of November 2024. While this represents just 1.77% of the broader meme coin market, PolitiFi's rapid incline tells an intriguing story of how quickly new crypto categories can capture investor attention - and capital.

Politics meets blockchain

What sets PolitiFi apart is its unique responsiveness to real-world political events. For instance, when Donald Trump won the Iowa Republican caucuses in January, MAGA (TRUMP) surged 79.1% in a single day.

Continuing on this narrative, the market has shown similar sensitivity to events ranging from legal verdicts to health scares, with tokens like Jeo Boden (BODEN) and Kamala Horris (KAMA) swinging dramatically on related news. 

The Trump assassination attempt even saw MAGA (TRUMP) rally 41.2%, while Biden's COVID-19 diagnosis caused Jeo Boden to plummet 27.3%.

No jokes, just a new political ecosystem

While most PolitiFi tokens began as satire, some have evolved to serve more practical purposes. MAGA (TRUMP), for instance, channels transaction fees directly to Donald Trump's Ethereum wallet and aligned charities, creating an unconventional yet innovative intersection between cryptocurrency speculation and political fundraising.

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Is crypto a new form of political expression?

Time will tell whether PolitiFi is just another crypto trend, but for now it serves as a new way for people to engage with politics. These tokens mix financial speculation, political commentary, and grassroots fundraising, creating a space where community opinions can be quickly turned into monetary support.

As digital finance, political activism, and social commentary keep overlapping, PolitiFi coins might signal a new era of political involvement. Whether this is a short-lived trend or the start of a big shift in how we connect with political causes is still up in the air.

One thing's for sure: in the unpredictable world of crypto, surprises are the norm, and that’s exactly what makes it exciting.

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Bitcoin (BTC)

Known as "digital gold," Bitcoin is the pioneering cryptocurrency utilising blockchain technology to maintain a decentralised, unalterable ledger. It operates without central authority control and maintains a communal record of all transactions ever conducted.

Ethereum (ETH)

Ethereum is an open-source platform enabling developers to construct and deploy decentralised applications. It can be conceptualised as a programmable Bitcoin, allowing participants to execute decentralised blockchain applications known as "smart contracts".

Tap (XTP)

Tap Token (XTP) is a digital asset powering the Tap Network, a platform merging blockchain technology with everyday financial transactions. XTP functions as a utility token within this ecosystem, notably facilitating cashback rewards and premium services. XTP users can earn cashback on transactions, enhancing everyday spending while harnessing blockchain technology benefits.

Tether (USDT)

Tether (USDT) is a cryptocurrency designed to mirror the US dollar's value. It aims to create a stable cryptocurrency usable as digital dollars. Tether converts cash into digital currency, "tethering" the coin's value to national currencies like the US Dollar, ensuring price stability.

USD Coin (USDC)

USDC is a fully collateralised US Dollar stablecoin. This Ethereum-powered coin is the brainchild of CENTRE, an open-source project. USD Coins are issued by regulated, licensed financial institutions maintaining full reserves of the equivalent fiat currency in a 1 USDC: 1 USD ratio.

Litecoin (LTC)

Litecoin is a peer-to-peer digital currency designed for near-instantaneous, virtually costless payments worldwide. It's an open-source, global payment network operating in a fully decentralised manner without any central authorities.

Ripple (XRP)

XRP is a digital currency created by Ripple Labs to enhance global financial transaction efficiency. Unlike traditional cryptocurrencies, XRP prioritises speed and scalability, aiming to facilitate seamless cross-border payments with minimal fees. It functions as a high-performance bridge between different currencies, enabling swifter and more cost-effective global transfers.

Dai (DAI)

Multi Collateral Dai (DAI) is a cryptocurrency backed by multiple collaterals. Created by Maker, a smart contract platform on the Ethereum blockchain, it allows anyone to leverage their Ethereum assets and generate MCD tokens on the Maker Platform. Once generated, MCD can be utilised similarly to other cryptocurrencies.

Shiba Inu (SHIB)

SHIB is an experiment in decentralised spontaneous community building. Shiba Inu is entirely community-driven and governed, demonstrating genuine loyalty to the DeFi network's core values, built on Ethereum. Its native utility token, SHIB, will power ShibSwap and other DeFi protocols and tools.

Aave (AAVE)

Aave is a decentralised, non-custodial money market protocol where users can participate as depositors or borrowers. Depositors provide market liquidity to earn passive income, while borrowers can borrow in an overcollateralised (perpetually) or undercollateralised (one-block liquidity) manner. Aave aims to bring decentralised finance to the masses, with its protocol being fully open source and audited for security.

Cardano (ADA)

Cardano is a fully open-source crypto project developing a smart contract platform aiming to deliver more advanced features than existing blockchain protocols. It adopts a scientific philosophy and a research-first driven approach, striving to balance user needs with regulatory requirements, thereby combining privacy with regulation.

Chainlink (LINK)

Chainlink (LINK) is a decentralised oracle service aiming to connect smart contracts with real-world data. As blockchains cannot access external data, oracles serve as data feeds in smart contracts. Oracles provide external data (e.g., temperature, weather) triggering smart contract executions upon fulfilling predefined conditions.

Polygon (MATIC)

Matic provides scalable, secure, and instant transactions using sidechains based on an adapted Plasma framework implementation for asset security and a decentralised network of Proof-of-Stake (PoS) validators. It enables the creation of scalable dApps while ensuring superior user experience in a secure, decentralised manner. Matic intends to support other blockchains in the future, offering interoperability features alongside scalability to existing public blockchains.

Axie Infinity (AXS)

Axie Infinity is an NFT-based gaming platform where users can battle, collect, grow, and trade digital pets called Axies. Axies can be composed of hundreds of interchangeable parts, offering nearly infinite creative possibilities. As non-fungible tokens, each Axie is unique, increasing its potential value appreciation. Axie Infinity also offers governance through its native utility token, Axie Infinity Shards (AXS).

Compound (COMP)

Compound is an algorithmic money market protocol on Ethereum allowing users to earn interest or borrow assets against collateral. Users can supply assets to Compound's liquidity pool and immediately begin earning continuously compounding interest. Rates adjust automatically based on supply and demand. Supplied asset balances are represented by cTokens, which earn interest and serve as collateral.

ApeCoin (APE)

ApeCoin serves as the governance and utility token for navigating the APE ecosystem. APE token holders participate in the decentralised community known as the APE DAO, enabling developers to incorporate APE into both new and existing projects.

Solana (SOL)

Solana is a single-chain, delegated proof-of-stake protocol focused on delivering scalability without compromising decentralisation or security. SOL is the Solana blockchain's native token. Solana aims to support all high-growth and high-frequency blockchain applications and democratise global financial systems.

The Graph (GRT)

The Graph is an indexing protocol for querying data from networks like Ethereum and IPFS, powering numerous applications in both DeFi and the broader Web3 ecosystem. Developers can build and publish open APIs, called subgraphs, which applications can query using GraphQL to retrieve blockchain data. The Graph currently supports indexing data from Ethereum, IPFS, and POA, with more networks planned for the future.

Decentraland (MANA)

Decentraland (MANA) is a virtual reality platform powered by the Ethereum blockchain, enabling users to create, experience, and monetise content and applications. In this virtual world, users purchase land plots they can navigate, build upon, and monetise. Decentraland uses two tokens: MANA (an ERC20 token) and LAND (non-fungible ERC721 tokens).

Dogecoin (DOGE)

Originating from an internet meme, Dogecoin (DOGE) began as a joke but its passionate community helped grow the cryptocurrency to a significant market cap. DOGE is similar to Bitcoin but easier to mine (or "dig" in DOGE protocol terms). Dogecoin is a peer-to-peer, open-source digital currency known for its Shiba Inu coin mascot, represented as a fun, lighthearted cryptocurrency for value transfer within its community.

Enjin (ENJ)

Enjin has established itself as a blockchain ecosystem developer, creating a suite of user-first blockchain products enabling easy management, exploration, distribution, and integration of blockchain assets. Built on an on-chain infrastructure and comprising the Enjin Platform, Marketplace, Wallet, Beam, and other tools and services, the Enjin ecosystem aims to help game industry businesses increase revenue, gain competitive edge, and innovate.

UNI (Uniswap)

Since its inception, the Uniswap Protocol has served as a trustless and highly decentralised financial infrastructure. Having proven product-market fit for decentralised financial infrastructure, Uniswap is well-positioned for community-led growth, development, and self-sustainability. The introduction of UNI (ERC-20) enables shared community ownership and a vibrant, diverse governance system to guide the protocol's future.

Maker (MKR)

Maker DAO is a decentralised autonomous organisation on the Ethereum blockchain aiming to minimise its stable token DAI's price volatility against the IMF's currency basket SDR. Its token, MKR, is a speculative Ethereum-based token backing DAI's value. Maker earns continuous fees on all outstanding DAI for governing the system and assuming bailout risks. Maker's income is channelled to MKR owners through a Buy Back programme.

Sandbox (SAND)

SAND is the utility token used throughout The Sandbox ecosystem as the basis for transactions and interactions in the blockchain-based, play-to-earn game. The Sandbox is a community-owned and driven platform where users can create, monetise, and trade voxel assets and in-game experiences. It's an ERC-20 utility token built on the Ethereum blockchain.

1inch (1INCH)

1inch is a decentralised exchange (DEX) aggregator optimising cryptocurrency trades by finding the best prices across multiple DEXs. Users can access improved rates and lower slippage on trades, facilitating efficient and cost-effective transactions across the decentralised finance (DeFi) ecosystem.

Convex (CVX)

CVX is the native token of Convex Finance, a decentralised finance platform enhancing yield farming on Curve Finance. CVX holders can boost their rewards and participate in governance decisions within the Convex ecosystem. CVX helps maximise returns for liquidity providers and stakers, making it a key asset for optimising DeFi investments.

Synthetic (SNX)

SNX is the native token of Synthetix, a decentralised platform for trading synthetic assets. By staking SNX, users can mint and trade various synthetic assets mirroring real-world asset values, like currencies and commodities. SNX holders earn rewards and participate in Synthetix network governance, aiming to provide a robust, flexible trading environment in the DeFi space.

LIDO (LDO)

LIDO is a decentralised staking protocol allowing users to earn rewards on staked assets while maintaining liquidity. Users can stake assets like Ethereum and receive liquid staking tokens in return, usable across DeFi platforms. LIDO simplifies staking with enhanced flexibility and access to rewards without fund lockup.

Bitdao (BIT)

BIT is BitDAO's governance token, enabling holders to participate in decision-making processes and influence the DAO's direction. BIT holders can vote on proposals, contribute to DeFi project development, and shape the BitDAO ecosystem's future.

Curve Dao Token (CRV)

Launched in 2020, Curve serves as a DeFi Automated Market Maker (AMM) platform for stablecoin exchange. The network launched a decentralised autonomous organisation (DAO) using CRV as its native token. Curve's governance protocol rewards users with CRV based on liquidity commitment and ownership duration.

Gnosis (GNO)

GNO is the native token of Gnosis, a decentralised platform for creating and managing prediction markets and DeFi applications. GNO token holders have governance rights and a stake in the Gnosis ecosystem, allowing participation in decision-making and shaping the platform's future. GNO supports innovative financial product development and decentralised applications on the Gnosis network.

Polkadot (DOT)

Polkadot is an open-source project founded by the Web3 Foundation. It's a sharded protocol enabling blockchain networks to operate together. The DOT token serves three distinct purposes: network governance, staking, and bonding.

Quant (QNT)

The Quant platform is known for its revolutionary blockchain protocol, Overledger, allowing developers to build applications on an open network. This project aims to redefine the internet as we know it and is the only platform permitting multi-chain application building on an internet-scale, decentralised network.

Chiliz (CHZ)

Chiliz is a fin-tech platform for tokenising sports teams, using its blockchain technology and native token, CHZ, as collateral for fans to collect tokens and rewards. The network provides access by partnering with Socios.com to build relationships with well-known sports leagues, who then create their own branded fan tokens.

Chain (XCN)

XCN is the Chain network's native token, aiming to enhance blockchain system scalability and interoperability. As the Chain ecosystem's utility token, XCN is used for staking, governance, and accessing various network services. XCN holders can participate in decision-making processes and help drive scalable blockchain solution development within the Chain network.

GensoKishi Metaverse (MV)

MV is the GensoKishi Metaverse's native token, a virtual world blending gaming and decentralised finance (DeFi). MV tokens are used within the GensoKishi Metaverse for transactions, in-game purchases, and governance. MV holders can participate in the metaverse's growth and development, access exclusive content, and engage in this blockchain-based virtual world's vibrant ecosystem.

PAX Gold (PAXG)

PAXG is a digital token backed by gold, offering a stable, secure way to invest in precious metals. Each PAXG token is pegged to one troy ounce of gold held in reserve, providing users with a stable value store and cryptocurrency's liquidity and ease. PAXG allows users to gain gold value exposure while benefiting from blockchain technology's efficiency and flexibility.

Ankr (ANKR)

Ankr (ANKR) works to realise Web3 by creating optimal accessibility for decentralised web builders. The network facilitates easy, affordable node deployment on blockchains, reduces costs, and streamlines processes for users, enabling universal Web3 participation. ANKR, Ankr's native token, serves as the network's payment method.

Balancer (BAL)

BAL is the governance token of Balancer, a decentralised exchange and automated portfolio manager. BAL holders can participate in Balancer protocol governance, vote on proposals, and influence platform development. BAL also incentivises liquidity providers, rewarding them for Balancer ecosystem participation and helping ensure the platform's stability and growth.

Kyber Network (KNC)

Kyber Network's on-chain liquidity protocol allows decentralised token swap integration into any application, enabling seamless value exchange among all ecosystem parties. Leveraging the protocol, developers can build payment flows and financial apps, including instant token swap services, ERC-20 payments, and innovative financial dApps, contributing to a world where any token is universally usable.

Ethereum Name Service (ENS)

ENS (Ethereum Name Service) is a decentralised domain name system mapping human-readable names to Ethereum addresses and other blockchain identifiers. ENS token holders can participate in ENS protocol governance, vote on key decisions, and manage their domain names. ENS simplifies blockchain application interactions by replacing complex addresses with easily memorable names.

Basic Attention Token (BAT)

Basic Attention Token (BAT) is a blockchain-based digital advertising and rewards token from Brave Software. This Ethereum-based ERC20 token enables advertisers, publishers, content creators, and developers to reward each other for their services. User attention is privately monitored in the Brave browser, with publishers rewarded accordingly using BATs. Users also receive BAT tokens for participation.

Loopring (LRC)

Loopring is a Layer 2 scaling solution for Ethereum functioning as a DEX (Decentralised Exchange), AMM (Automated Market Maker), and blockchain data migration service. Loopring's scaling system only uses the Ethereum Layer 1 blockchain for verification, achieving higher speeds with lower per-transaction costs.

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In the Investments’ world, there are winners, and then there are game-changers. Bitcoin has proven to be nothing short of a financial revolution, transforming the dreams of early investors into a staggering reality that has left traditional assets in the dust.

Imagine turning $100 into $26,931 in just a decade. It sounds like a fairy tale, but for some Bitcoin investors, it's been their reality. This digital upstart has not just entered the financial arena – it has completely rewritten the rules of investment.

A look at the numbers

Let's break down the decade-long financial journey:

Traditional assets have followed a predictable path. The S&P 500 delivered a respectable 193.3% return. Gold, the timeless store of value, grew by 125.8%. Government bonds and crude oil? They barely managed to keep pace, with treasuries offering modest returns and oil crawling to a mere 4.3% gain.

Then there's Bitcoin. A digital maverick that laughs in the face of conventional wisdom, delivering a mind-boggling 26,931.1% return. To put this into perspective, every $100 invested in Bitcoin in 2014 would be worth nearly $27,000 today – a return that would make even the most aggressive investors do a double-take.

The rollercoaster of volatility

But this isn't a story of smooth sailing. Bitcoin's journey has been a wild ride of extreme highs and gut-wrenching lows. Its price has wigwagged between $172.15 and $103,679, with dramatic 70% crashes that would admittedly send most investors running for the hills. 

Despite their rocky nature, these four-year cycles, coinciding with Bitcoin halving events, have become legendary in financial circles.

A new asset class dominates

What's truly fascinating is how Bitcoin has defied traditional market correlations. Unlike stocks or gold, which often move in predictable patterns, Bitcoin has danced to its own tune. For years, it moved independently of the S&P 500, only beginning to show some correlation during major economic events like the pandemic.

The performance breakdown:

1. Bitcoin: 26,931.1%
2. S&P 500: 193.3%
3. Gold: 125.8%
4. 10-Year Treasuries: 86.8%
5. Crude Oil: 4.3%

A word of caution

While the numbers are eye-popping, this isn't a call to go all-in on Bitcoin. The asset's volatility is a double-edged sword. Its smaller market cap has allowed for explosive growth, but it also means higher risk. While Bitcoin’s results have been eye-popping, traditional assets like stocks, bonds, and gold continue to offer more stable, predictable returns.

Bitcoin drops the mic

What Bitcoin represents is more than just a financial asset.: it's a testament to the power of innovation, a digital rebellion against traditional financial systems. It challenges our understanding of value, currency, and investment.

As we look to the future, one thing is clear: the investment landscape will never be the same again. Bitcoin has proven that in the world of finance, sometimes the most unlikely contenders can become the most powerful players.

Note: This analysis is based on historical performance data from CoinGecko, tracking Bitcoin and traditional assets from December 2014 to December 2024.

In the continuously evolving landscape of cryptocurrencies, stablecoins stand out as the level-headed cousins of the more volatile digital assets. These cryptocurrencies, designed to maintain a stable value, have been gaining traction in the financial world. However, their rising popularity has not gone unnoticed by regulators, particularly in the European Union.

The EU, known for its proactive stance on financial regulation, has set its sights on stablecoins. Recent developments indicate a significant shift in the regulatory approach, with new rules being implemented that could substantially impact the future of stablecoins in Europe. 

This blog takes a look at the EU's latest regulatory measures, their implications for the stablecoin market, and what this means for the broader cryptocurrency ecosystem.

What is Markets in Crypto-Assets (MiCA)?

The Markets in Crypto-Assets (MiCA) regulation serves as a unified framework to standardise crypto-asset regulation throughout the European Economic Area (EEA). Its goals are to foster innovation while safeguarding consumer interests, ensuring market integrity, and maintaining financial stability. 

By replacing individual national regulations, MiCA creates a consistent approach for crypto-asset service providers and token issuers.

Under Titles III and IV, MiCA’s stablecoin provisions took effect on 30 June 2024. This framework also introduces a licensing process for companies issuing stablecoins within the EEA, meaning that only MiCA-compliant entities will be permitted to issue and distribute stablecoins across the region.

How the EU defines stablecoins

According to the EU's MiCA regulation, stablecoins are categorised into two distinct types:

• E-money tokens (EMTs): These stablecoins are pegged to a single official currency, functioning similarly to electronic money. E.g. USDT and USDC.
• Asset-referenced tokens (ARTs): These stablecoins are backed by multiple assets, such as a diversified basket of currencies, commodities, or other cryptocurrencies. E.g. DAI and PAXG.

Both types are designed to provide stability in the often volatile cryptocurrency market, but each has its own specific regulatory requirements under MiCA.

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Key EU regulations on stablecoins

MiCA imposes restrictions on stablecoin issuance and usage, particularly focusing on their use as a means of exchange for goods and services. This regulation aims to protect monetary sovereignty within the EU.

For foreign currency e-money tokens (like USDC or Tether) and asset-referenced tokens, there are limits on their use for everyday transactions within the EU. However, these limits are specifically designed not to restrict stablecoin use within the crypto world or for broader investment purposes.

The regulation allows for unlimited use of stablecoins for crypto-related activities and investments but aims to limit their use as a replacement for traditional currencies in everyday transactions.

A great takeaway is that the EU is preparing for stablecoins to make a bigger appearance in everyday financial transactions. 

Limits on Transaction Volumes

MiCA sets daily limits on non-EU currency stablecoins used "as a means of exchange within a single currency area." Issuers are required to halt issuance if daily usage surpasses 1 million transactions or €200 million.

However, several exclusions reduce the scope of these limits:

• Transactions involving at least one party outside the EU are exempt.
• Investment-related transactions, including those involving crypto assets, are excluded.
• Transactions between non-custodial wallets are not subject to reporting.
• Collateral and derivatives transactions are not counted.

Guidance from the European Banking Authority (EBA) has further clarified these exemptions, suggesting that the impact on stablecoin usage may be minimal. However, for issuers aiming to expand in the EU’s retail payments market, MiCA indicates a clear preference for Euro-based stablecoins over foreign currency alternatives.

Requirements for Stablecoin Issuers

Out of interest, MiCA’s framework also outlines key requirements for stablecoin issuers:

• Reserve Management: Issuers must ensure that reserve assets are effectively managed, remain separate from their own assets, and are not pledged as collateral.
• E-money Token Issuers: These issuers must be licensed either as credit institutions or electronic money institutions (EMIs) and must allow holders to redeem the token’s value against the referenced currency at any time.
• Asset-Referenced Token Issuers: These issuers are required to maintain a reserve to back the token's value, mitigating currency and market risks. They must obtain regulatory authorisation and have their whitepaper approved before launching tokens to the public.
• Reporting: Issuers are also required to submit quarterly transaction volume reports to ensure ongoing compliance with regulatory thresholds.

Final thoughts

The EU’s regulatory approach to stablecoins under MiCA strikes a careful balance between fostering innovation and maintaining financial stability. By categorising stablecoins and setting strategic limitations, the EU signals an openness to progress while emphasising stability. 

Moving forward, we can anticipate a more organised stablecoin market within the EU, with Euro-based options likely leading in routine transactions. In a broader picture, internationally, the EU’s approach may set a regulatory benchmark, encouraging other regions to adopt similar frameworks. 

As this regulatory journey progresses, the global cryptocurrency community will be watching closely to see the impact of the EU’s structured approach.

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Planning a Spanish getaway? Don't let cash concerns dampen your fiesta spirit! At Tap, we're all about making your travel experiences seamless and stress-free. So, we've put together this handy guide to help you navigate the world of Spanish ATMs like a pro.

Finding ATMs in Spain

Good news: finding ATMs in Spain is much easier than finding the perfect paella. ATMs (or "cajeros automáticos" as the locals call them) are as abundant in Spain as sunshine and siestas. You'll find them:

• At airports 
• Along bustling high streets
• In shopping centers 
• Outside bank branches

Pro Tap Tip: Heading off the beaten path? Rural areas might be a bit trickier for ATM hunting. Pack some extra euros if you're venturing into Spain's charming countryside.

Will your card work? (spoiler: probably)

You're golden if you've got your Tap card in your wallet! Visa and Mastercards are widely accepted across Spain, as well as American Express, but be sure to check with the restaurant before settling in. 

Withdrawal limits

Expect to be able to withdraw between €300 to €1,000 per transaction. But remember, your UK bank might have its own daily limit. Check before you travel.

With regards to your Tap card, most plans offer a monthly card spending limit of €15,000 and free ATM withdrawals of up to €500. The Prestige and Platinum account options offer more. 

Navigating ATM fees

Let's talk about those hidden fees:

1. Exchange rate fees: Always choose to be charged in euros. Trust us on this one – it'll save you from sneaky exchange rate markups.
2. ATM fees: Spanish ATMs might charge a small fee (usually under €1). But watch out for those privately-owned machines – they can be pricey.
3. Your bank's fees: Some UK banks charge for overseas withdrawals. Check your terms before you fly. (As mentioned above, Tap offers free ATM withdrawals up to €500 on most plans).

Tap's top tips for ATM triumph

1. Airport ATMs: Convenient? Yes. Expensive? Also yes. Use as a last resort only.
2. Bank partnerships: Check if your bank has Spanish besties. You might score some free withdrawals.
3. Go local: Always choose to be charged in euros. 
4. Spread the love: Make fewer, larger withdrawals to minimise per-transaction fees.

Why Tap is your perfect travel companion

While we can't accompany you on your tapas tour or salsa lessons, Tap can make your Spanish spending spree a breeze. With our multi-currency account and card:

• Spend like a local in 150+ countries (including Spain, of course)
• Enjoy fee-free ATM withdrawals up to €500 per month
• Get real-time exchange rates that won't break the bank
• Keep an eye on all your transactions in real time in one convenient location - your phone.

Ready to make your Spanish adventure as smooth as possible? Download the Tap app and say "¡Adiós!" to travel money worries. Psst be sure to order your card before you leave, we’ll deliver it to your door in no time. 

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