Is a stablecoin the same as a bank deposit?

No. A stablecoin is a claim on the issuer, backed by reserves the issuer holds. Under MiCA, e-money token holders have a right to redeem at par, but the token is not covered by a deposit guarantee scheme.

Which stablecoins are allowed in the EU?

Under MiCA, a stablecoin referencing one official currency is an e-money token and needs an authorised issuer (a bank or e-money institution). USDC and EURC are issued in the EU by Circle's French e-money institution.

Can a stablecoin lose its peg?

Yes. Prices on exchanges can move away from 1.00 for a while, especially during stress at the issuer or its banks. Redemption at par with the issuer is what pulls the price back.

What are stablecoins used for?

Sending money across borders in minutes, getting paid by foreign clients, holding dollars or euros outside a single bank, and moving value between crypto platforms without converting to cash.

Do I pay tax on stablecoins in Bulgaria?

Stablecoins are crypto-assets under Bulgarian tax law. Individuals report gains and losses from selling or exchanging them in Annex 5 of the annual return; the net result is taxed at 10% after a 10% statutory deduction.

Stablecoin

By xChange.bg team
Published 16 September 2026

A stablecoin is a token on a blockchain whose price is meant to stay level with something outside crypto, in most cases a national currency.

How stablecoins keep their value

Fiat-backed stablecoins hold cash and short-term government bonds equal to the tokens issued. USDC (US dollar) and EURC (euro) from Circle work this way and publish monthly reserve reports.
Crypto-backed stablecoins lock more crypto than they issue, so a price drop in the collateral does not break the peg immediately.
Algorithmic stablecoins try to hold the price with supply rules alone. Several have collapsed. MiCA does not treat the mechanism as an exemption: a token that aims to track an official currency falls under the same stablecoin rules however it works.

Stablecoins under MiCA

The EU's Markets in Crypto-Assets Regulation splits stablecoins into e-money tokens (one official currency, such as USDC or EURC) and asset-referenced tokens (a basket or other assets). Both rules have applied since 30 June 2024. An e-money token can only be offered to the public in the EU by an authorised credit institution or e-money institution, and holders can redeem at par.

Frequently asked questions

Is a stablecoin the same as a bank deposit?: No. A stablecoin is a claim on the issuer, backed by reserves the issuer holds. Under MiCA, e-money token holders have a right to redeem at par, but the token is not covered by a deposit guarantee scheme.
Which stablecoins are allowed in the EU?: Under MiCA, a stablecoin referencing one official currency is an e-money token and needs an authorised issuer (a bank or e-money institution). USDC and EURC are issued in the EU by Circle's French e-money institution.
Can a stablecoin lose its peg?: Yes. Prices on exchanges can move away from 1.00 for a while, especially during stress at the issuer or its banks. Redemption at par with the issuer is what pulls the price back.
What are stablecoins used for?: Sending money across borders in minutes, getting paid by foreign clients, holding dollars or euros outside a single bank, and moving value between crypto platforms without converting to cash.
Do I pay tax on stablecoins in Bulgaria?: Stablecoins are crypto-assets under Bulgarian tax law. Individuals report gains and losses from selling or exchanging them in Annex 5 of the annual return; the net result is taxed at 10% after a 10% statutory deduction.