The Digital Euro Association (DEA) has issued a report, arguing that Europe can use stablecoins for machine-to-machine (M2M) payments – A growing category of financial transactions.

The report titled – “The future of machine money – Opportunities for stablecoins in Europe” –  throws light on how Europe can harness the potential of stablecoins to help develop the Internet of Things (IoT). Once regulations are in place, the DEA sees automated micropayments as a way for Europe to maintain its digital competitiveness.

There are growing use cases for M2M micropayments in industrial, home and office settings, such as handling charges for shipping containers, cloud storage, and other services.

According to the report, stablecoins could increase scalability and reduce or eliminate intermediaries, alleviating the usability and security challenges that APIs present. M2M payments also allow Europe to take advantage of stablecoin technologies to a greater extent as many of its features are more applicable elsewhere.

(By Suzuki Shillsalot)