Quick answer
MiCA (Regulation (EU) 2023/1114) is the EU crypto rulebook[1]. For payments, its key idea is the e-money token: a stablecoin tied to one currency[3], issued only by banks or e-money institutions[5], redeemable at par without a fee[7] and barred from paying interest[8].
Key points
- MiCA's stablecoin rules have applied since 30 June 2024; the rest since 30 December 2024.
- A euro or dollar stablecoin in the EU is usually an e-money token, and only a credit institution or e-money institution may issue one.
- Holders can redeem e-money tokens with the issuer at par, at any time and without a fee.
- Nobody may pay interest on e-money tokens, including rewards linked to how long you hold them.
- Crypto held through a bank or payment app is not a deposit, so the EU deposit guarantee does not cover it.
On this page
#Why should a bank or payment-app customer care about MiCA?
Euro and dollar stablecoins are starting to show up where people keep everyday money: banking apps, e-money wallets and payment services. The Markets in Crypto-Assets Regulation (MiCA) decides what those tokens are allowed to be in the EU. It entered into force on 29 June 2023[1]; its rules on stablecoins applied from 30 June 2024 and everything else from 30 December 2024[2].
For a payments reader, one category matters most. MiCA calls a token that aims to hold its value by referencing a single official currency an e-money token (EMT)[3]. The name is deliberate: the EU already regulates e-money, which the Commission describes as a digital alternative to cash stored on a card, a phone or online[4].
#Who is allowed to issue a euro stablecoin?
Only firms that already sit inside the payments and banking perimeter. An e-money token may be offered to the public in the EU only by an authorised credit institution or e-money institution[5] — in plain terms, a bank or a licensed e-money firm. A token that references a basket of currencies or other assets is an asset-referenced token instead, with its own authorisation[6].
| Question | Bank deposit | E-money token (EMT) | Other crypto-asset |
|---|---|---|---|
| Who owes you | The bank | The issuing bank or e-money institution[5] | Depends on the token |
| Getting euros back | Withdraw from the account | Redeem with the issuer at par, no fee[7] | Sell at the market price |
| Interest | Depends on the account | Banned, including time-based rewards[8] | Depends on the platform |
| EU deposit guarantee (up to €100,000) | Yes[9] | No: not a deposit | No: not a deposit |
The deposit guarantee covers bank deposits only; crypto-assets of any type are outside it.
#What happens when you turn tokens back into euros?
MiCA gives e-money token holders a direct claim on the issuer. Tokens must be issued at par when the issuer receives funds, and the issuer must redeem them on request, at any time and at par value, without a fee[7]. That is the payments-style promise. On a trading platform the picture is different: the Bank for International Settlements notes that stablecoins trade in secondary markets at rates that can stray from par[10].
Worked example
Worked example: redeeming vs selling 1,200 euro tokens (hypothetical)
Two ways out of the same 1,200 e-money tokens, each referencing €1. The market price and platform fee are invented for illustration; the sums were computed with code.
- Redeem with the issuer at par (Article 49)
- €1,200.00
- Redemption fee allowed by Article 49
- €0
- Sell on a platform at €0.998 per token
- €1,197.60
- Platform fee at 0.5%
- €5.99
- You receive after selling
- €1,191.61
- Cost of selling instead of redeeming
- €8.39
Check how your app gets you out. Some routes go back through the issuer; others simply sell the tokens for you at whatever price the market offers.
#Why can't a euro stablecoin pay interest?
Article 50 bans interest on e-money tokens, and it binds both issuers and crypto-asset service providers. Any remuneration or benefit linked to how long you hold the token counts as interest[8]. That keeps EMTs in the role of a means of payment rather than a savings product. If an app advertises a return on a euro token, find out who is paying it and on what terms — the comparison in stablecoin vs CBDC vs bank deposit shows where interest can and cannot come from.
#Can your bank or payment app sell crypto under MiCA?
Yes, if it has the right permission. Offering crypto-asset services to EU customers requires authorisation as a crypto-asset service provider (CASP), unless the firm is an already regulated firm, such as a bank, investment firm or e-money institution, that is allowed to do so[11]. The services MiCA lists include custody, exchanging crypto for money and transfer services on behalf of clients[3]. An authorised provider can serve customers across the EU from one licence[11].
Three protections follow you into the app. Custodians must record each client's positions and keep client crypto separate from their own[12] (more in crypto custody explained). Crypto firms are obliged entities under EU anti-money-laundering rules[1], so expect the identity checks described in KYC explained. And the EU supervisors stress that legal protection may be limited depending on the crypto-asset involved[13].
Before you use a crypto or stablecoin feature in a banking app
Check the register
Look the provider up in ESMA's register or on your national regulator's site[14].
Ask what the token is
An e-money token carries par redemption[7]; other crypto-assets do not.
Ask how you exit
Redemption with the issuer or a sale at market price can pay out different amounts.
Treat it as separate from savings
Deposit protection of up to €100,000 applies to bank deposits only[9]; see how deposit insurance works.
Common mistakes with euro stablecoins in finance apps
Reading a token balance as a deposit
It sits outside the deposit guarantee that covers bank accounts[9].
Assuming any euro token can be redeemed at par
That right attaches to e-money tokens[7]; a sale on a platform can come in below par[10].
Chasing a 'reward' on a euro token
Time-based rewards on e-money tokens count as banned interest[8].
Skipping the authorisation check
Unauthorised providers can leave you with little or no way to recover assets[14].
Go deeper: for the full legal picture — the three token categories, white papers, transitional periods and what a crypto firm needs to operate — read MiCA regulation explained on Bitfolio.
The bottom line
MiCA pulls euro and dollar stablecoins towards the rules for e-money: licensed issuers, redemption at par without a fee and no interest. A crypto feature in a banking app still sits outside the deposit guarantee, so check the provider's authorisation, what kind of token you hold and how you get your euros back.
Frequently asked questions
Is a euro stablecoin the same as money in my bank account?
Can a payment app pay me interest on stablecoins?
Not on e-money tokens. MiCA bans interest from issuers and crypto-asset service providers, including rewards linked to holding time[8].
Who supervises the largest stablecoins?
For tokens classed as significant, the European Banking Authority sets out how supervision moves to it and how it works with national authorities[6].
Can one licensed app serve me anywhere in the EU?
Yes. An authorised crypto-asset service provider can offer its services across the EU without a physical presence in each country[11].
Sources
- Crypto-assets (Markets in Crypto-Assets Regulation) — European Commission (DG FISMA), 2026 Primary
- MiCA Article 149 — Entry into force and application — ESMA Interactive Single Rulebook (Regulation (EU) 2023/1114), 2023 Primary
- MiCA Article 3 — Definitions — ESMA Interactive Single Rulebook (Regulation (EU) 2023/1114), 2023 Primary
- E-money — European Commission (DG FISMA) Primary
- MiCA Article 48 — Requirements for the offer to the public or admission to trading of e-money tokens — ESMA Interactive Single Rulebook (Regulation (EU) 2023/1114), 2023 Primary
- Asset-referenced and e-money tokens (MiCA) — European Banking Authority, 2026 Primary
- MiCA Article 49 — Issuance and redeemability of e-money tokens — ESMA Interactive Single Rulebook (Regulation (EU) 2023/1114), 2023 Primary
- MiCA Article 50 — Prohibition of granting interest — ESMA Interactive Single Rulebook (Regulation (EU) 2023/1114), 2023 Primary
- Deposit guarantee schemes — European Commission (DG FISMA), 2026 Primary
- Annual Economic Report 2025, Chapter III: The next-generation monetary and financial system — Bank for International Settlements, 2025 Primary
- MiCA Article 59 — Authorisation of crypto-asset service providers — ESMA Interactive Single Rulebook (Regulation (EU) 2023/1114), 2023 Primary
- MiCA Article 75 — Providing custody and administration of crypto-assets on behalf of clients — ESMA Interactive Single Rulebook (Regulation (EU) 2023/1114), 2023 Primary
- EU Supervisory Authorities warn consumers of risks and limited protection for certain crypto-assets and providers — European Banking Authority (joint ESAs press release), 2025 Primary
- Crypto-assets explained: what MiCA means for you as a consumer (joint ESAs factsheet) — European Supervisory Authorities (EBA, EIOPA, ESMA), 2025 Primary
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