Elrond Network, a layer 1 blockchain designed for scalability, has acquired Romanian payments business Twispay, as well as the National Bank of Romania’s authority to issue electronic money.
Elrond Network, which recently bought payments gateway Utrust, would not disclose financial terms of the agreement, but the blockchain’s CEO, Beniamin Mincu, referred to it as a “landmark decision” by a European central bank.
Mincu said in an interview:
“This shows that central banks may be switching from a counterpoint to the crypto space, toward a more neutral or even potentially favorable point,”
A spokesman from the National Bank of Romania verified through email that Elrond had gained clearance to get an e-money license.
Electronic money, or e-money, is a general term describing an electronic store of monetary value that is used to make payments to organizations other than the e-money issuer. It’s been established for over a decade as a standardized mode of payment, incorporated in European Union regulations and controlled by central banks.
Elrond will be able to conduct e-money services across the European Union, Iceland, Liechtenstein, and Norway under EU passport laws.
According to Mincu, the EU Commission’s proposed Markets in Crypto-Assets Regulation (MiCA) states that regulated e-money institutions would be authorized to create stablecoins.
“We’ve been having focused conversations with the Romanian Central Bank about acquiring an e-money licensed institution that enables us to create stablecoins, for instance, in a legal and compliant way,”
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