Tether CEO Paolo Ardoino has criticized Europe’s digital currency ambitions, mocking the European Central Bank’s Digital Euro project.
The criticism comes as regulators scramble to tighten oversight under the EU’s landmark MiCA framework.
Paolo Ardoino Mocks Digital Euro as EU Faces MiCA Oversight Challenges
SponsoredIn a post on X (Twitter), Ardoino quipped that “Santa will bring us all the Digital Euro,” a sarcastic remark aimed at the central bank digital currency (CBDC) currently in its preparatory phase.
The ECB launched the Digital Euro in November 2023, billed as a secure and privacy-conscious complement to cash.
However, Ardoino’s jibe suggests deeper tensions between CBDCs and private stablecoins like Tether’s USDT, which dominate crypto markets outside Europe.
The Markets in Crypto-Assets (MiCA) regulation, in force since December 2024, was designed to standardize crypto oversight across the European Union. Yet just months into implementation, major national regulators say the rollout is already faltering.
France’s Autorité des Marchés Financiers (AMF), Austria’s Finanzmarktaufsichtsbehörde (FMA), and Italy’s Consob issued a joint statement warning of “major differences” in how countries are applying MiCA.
“Despite the coordination efforts of ESMA, the first few months of application of the Regulation have revealed major differences in how crypto-markets are being supervised,” read an excerpt in the statement.
The watchdogs stressed the need for urgent alignment with global standards from the Financial Stability Board and IOSCO.
Sponsored SponsoredThey cautioned that crypto firms may “shop around” for lenient jurisdictions without stronger EU-level supervision.
In their opinion, this would expose investors to risks and undermine Europe’s competitiveness.
Against this backdrop, the three watchdogs proposed four reforms:
- Direct supervision of the largest service providers by the European Securities and Markets Authority (ESMA),
- Closing loopholes that allow intermediaries to route trades to offshore platforms,
- Mandatory cybersecurity audits for firms seeking MiCA licenses, and
- A centralized filing system for token white papers.
Tether Pushes Back on Compliance
SponsoredTether, meanwhile, has so far resisted engaging with MiCA. Under the law, stablecoin issuers face stringent requirements:
- Full reserve backing with liquid assets,
- Caps on daily transactions for non-euro stablecoins, and
- Significant reserve holdings with EU banks.
Ardoino has argued that these rules pose more risks than benefits for consumers and issuers. One key sticking point is the requirement for independent reserves audits, an area where Tether has long faced criticism.
While the company publishes attestations, it has not secured a full audit since promising one in 2017. In an April 2025 interview, Ardoino acknowledged difficulties in securing a top-tier auditor, citing industry-wide reputational risks after the collapse of FTX and other scandals.
Sponsored Sponsored“Why would [an auditor] risk 100,000 customers for a couple of stablecoins?” he said.
Consumer advocates remain unconvinced. A report from Consumers Research called Tether’s lack of an independent audit a “distressing red flag” that may ultimately bar it from EU markets.
While Tether holds out, industry players like Coinbase, Kraken, and Bybit have already secured approvals under MiCA.
The European Commission has even floated proposals to soften certain provisions, raising further concerns among national regulators about regulatory arbitrage.
The next checkpoint will be in September, when the EU will provide a nine-month status update on MiCA’s rollout.
Beyond skepticism about CBDCs, however, Ardoino’s mockery of the Digital Euro highlights Europe’s uneasy path in balancing innovation, investor protection, and competitiveness in the global digital asset market.
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