Term
Stablecoin
A crypto-asset whose value is pegged to a stable asset, usually the dollar or euro, and backed by the issuer's reserves. In the EU its issuance is governed by MiCA, and for accounting and tax a business still treats it as a crypto-asset, not money.
Updated
What it means
A stablecoin is a crypto-asset whose value is pegged to a stable asset, most often the US dollar or the euro. The issuer backs it with reserves, such as cash in bank accounts or short-term government bonds, and promises redemption into the original currency one to one.
Stablecoins emerged as a bridge between the crypto world and ordinary money. They run on a blockchain, can be sent at any time and quickly even across borders, and often serve as the means of payment in smart contracts or as a temporary store of value when trading other crypto-assets.
In the EU their issuance is governed by the MiCA regulation, which distinguishes e-money tokens pegged to a single currency from tokens referenced to other assets. The issuer needs authorisation, must hold reserves and must allow redemption. A stablecoin is not the same as the digital euro issued by the central bank.
How it works in practice
If a company accepts payment in stablecoins, it still treats them for accounting and tax as a crypto-asset, not as money in a bank account. They must be valued on receipt, differences on sale or exchange tracked, and the rules on taxation of crypto-assets applied.
For business use, such as paying foreign suppliers, it is important to choose a stablecoin from a regulated issuer and to check whether a crypto-asset service provider in the EU may offer it. After MiCA took effect, some exchanges restricted tokens that do not meet its requirements.
The company should document who has access to the wallet, how keys are secured and how transactions are matched with invoices. This is the same internal control as for bank payments, with the difference that a mistaken transaction on a blockchain usually cannot be reversed.
What to watch out for
Stability is not guaranteed. If the issuer lacks sufficient or liquid reserves, a stablecoin can lose its peg and its value can fall sharply. The risk is higher with algorithmic stablecoins that are not backed by real assets.
When exchanging stablecoins for euros, banks often ask for proof of the source of funds under anti-money laundering rules. In Slovakia crypto-asset service providers are supervised by the National Bank of Slovakia, so it pays to use licensed partners.
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