the finnish company Membrane Finance has launched a fully reserved euro-backed stablecoin, according to a February 2 article on its blog. The company is licensed by the Finnish Financial Supervisory Authority (Fin-FSA) and claims that the new currency “EUROe” is “the first and only cryptocurrency regulated by the EU”.
Membrane Finance is excited to announce the launch of EUROe on Ethereum!
Read more at https://t.co/nV8dYKkBmK, and read the thread below to see how you can get started with $EUROe from today!
— EUROe (@EUROemoney) February 2, 2023
American company Circle Inc. launched its own euro-backed stablecoin in June, but your Euro Coin (EUROC) was initially held in custody by Silvergate Bank, a US regulated entity.
Each EUROe token is backed by “at least one euro fiat […] at a European financial institution or bank, separate from Membrane Finance,” according to the company post. The company believes it will enable “near instant payments” at close to zero cost, in contrast to the high cost and slow pace of traditional finance.
The CEO of Membrane Finance, Juha Viitala, expressed his hope that the regulated currency EUROe will encourage more Europeans to increase their wealth through the use of decentralized finance (DeFi) applications, stating:
“Stablecoins are an essential part of the transition to a blockchain-based monetary infrastructure, and Europeans deserve to have an EU full reserve euro stablecoin regulated by an EU-based financial authority. Hopefully EUROe attract more regular people to DeFi, who previously couldn’t do it or were worried about the volatility of cryptocurrencies.”
EUROe will initially be available on the Ethereum network, with support for additional blockchain networks planned for the future.
“Stablecoins”, or fiat-backed crypto tokens, have had a long and illustrious history in the crypto world. The first US dollar stablecoin, Tether (USDT), was initially launched for the Bitcoin Omni Layer, with an Ethereum version arriving in 2018. It is now the third largest cryptocurrency by market capitalization, according to CoinMarketCap.
On January 19, Circle and the team behind decentralized exchange Uniswap published a report claiming that blockchain-based currency exchange can reduce remittance costs by up to 80%.
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