What should we expect from the European Union regarding cryptocurrencies? Well it seems that regulation of the sector is making great strides. The reason is very simple: it seems that the first Stablecoin anchor to the EUR currency, called EUROe, has been born.
Today it is official: Europe says yes to the crypto world. Sure still there are some resistances, but this represents an important step towards a crypto world that many have been expecting for a few years now.
Europe on cryptocurrencies
The EU can no longer avoid the issue. Cryptos are now part of the financial world and are being untethered from a series of false myths that have kept many investors away.
The EU itself continues to work toward large-scale regulation, having recently passed a number of new financial laws.
One of those affecting digital assets appears to be precisely forcing financial institutions to assign a weighting of the maximum level of risk. This is a no-negotiable element.
Stablecoin based on the euro: EUROe is born
Is this the first one based on the EUR currency? No. In June 2022, Euro Coin (EURC) had already been launched by Circle, held by Silver Bank, but it was a U.S. government-regulated institution.
Instead, for the first time, we are now seeing the birth of a Stablecoin pegged to the euro and regulated by the European Union: EUROe. The news obviously brings a breath of fresh air for all crytpo investors in Europe, where we are finally beginning to observe some important steps regarding cryptocurrencies.
But what will we be able to do with the new Stablecoin pegged to our fiat currency? Let’s find out briefly.
The time to enter the Defi seems to be now. The Stablecoin EUROe seems ready to be a part of Europeans’ lives in perhaps the ultimate way.
It will finally be possible to make virtually instantaneous transactions, allowing people “across the sea” to pay at low cost.
This will reduce the time and fees of traditional finance, bringing more and more people to the side of crypto and blockchain.
Each digital currency will correspond to one euro, held in a European bank or financial institution other than the company responsible for its birth.
Yes, because an independent company, not the European government, is behind the birth of EUROe. And that’s what we’re going to talk about now. Who invented the Stablecoin EUROe?
The EUROe stablecoin launched by Finland
One company took the trouble to make the euro a digital currency. Who? It is the Finnish company Membrane Finance. In short, Finland is exporting the Defi throughout Europe.
Membrane Finance is a technology company that focuses on developing software and services to connect traditional finance to the Defi, creating infrastructure and systems that interlock with the blockchain.
The results have obviously been great, making Finland the first country to have a Stablecoin accepted and regulated by the European Union.
First Stablecoin regulated by EU
It is no secret that there is friction between fans of the old and the new. This is then obviously reflected in the EU’s interpretation of finance.
There are many people who are struggling just to imagine what EUROe means. But fortunately the generation gap is getting thinner and thinner thanks to the net.
Today Europe has finally recognized cryptos. Especially, giving value to Stablecoins and, for the first time ever, those pegged to EUR currency reserves.
Will there be more? Some experts are convinced there will be. Indeed, some big names such as the CEO of Binance say that Stablecoins will hold up the entire Web3.
Read also: Lagarde: “Rules are needed for cryptocurrencies”: what the ECB President said
Binance CEO on Stablecoins
There are some who do not think Stablecoin is safe. While others think it is the best alternative to cryptocurrencies and fiat currencies. Here, Changpeng Zhao, CEO of the famous crypto exchange Binance, said that the current market conditions will push many toward this category of digital currencies.
And not only that! It seems that the CEO specified that Stablecoins pegged to the yen or euro will be the ones to benefit most from this interest.
Especially since in recent days there have been several problems with one company, Paxos Trust Co. which is also linked to Binance USD (BUSD). This puts the US dollar in trouble, probably in favor of the new EUROe.
Read also: 10 crypto tax-free countries