Popular blockchain project, Elrond Network received a green light from the National Bank of Romania to acquire the payments firm Twispay.
By implementing Twispay’s e-money license, Elrond plans to issue stablecoins in the European Union (EU).
- According to the official press release shared with CryptoPotato, Elrond aims to revamp the utility electronic money or e-money and integrate blockchain technology.
- With Twispay under its hood, Elrond will be able to operate within the entire EEA – European Union, Iceland, Liechtenstein, and Norway – under the passporting rules.
- The announcement also revealed that Twispay is a principal member of Visa and Mastercard.
- Beniamin Mincu from Elrond Network commented:
“This landmark decision from the Romanian Central Bank opens the door for EU citizens, and soon for everyone everywhere, to significantly benefit from value flowing with near-instant settlement times, at 100x fewer costs, with full transparency, and higher reliability.”
- In addition to the issuance of e-money, the team will also be able to offer payments services under the second Payment Services Directive (PSD2).
- Under the EU Commission’s proposed European Regulation on Markets in Crypto-assets, the blockchain platform is also entitled to issue stablecoins that can be offered to the public in the EU region in a legal and compliant way.
- Besides new stablecoins, Elrond explained that other important use-cases such as – crypto-enabled debit cards, as well as benefits of decentralized finance (DeFi), non-fungible tokens (NFTs), and other Web 3 technologies, will also be explored within the applicable regulatory framework.
- Elrond had announced its intention to acquire the e-money service in October last year. During the same time, Beniamin Mincu, the CEO of Elrond Network, had stated that the team behind the platform was working closely working with regulators to ensure they “operate in a fully compliant manner within the perimeter defined by European law.”