EUROe: First European Union Regulated Cryptocurrency Stablecoin Launched in Finland
Sequel to the news of an EU-regulated cryptocurrency in 2022, Membrane Finance, which is the firm behind the designing and operations of the proposed newly released cryptocurrency. On Thursday, 2nd February 2023, the firm (Membrane Finance), on its blog, announced the release of the Euro-pegged coin, EUROe.
From the company’s website analysis, every EUROe is pegged with one Euro fiat currency in any of the EU banks. The Finnish government has long given the company an operating license through the Fin-FSA. According to this Finnish economic/financial regulator, the EUROe crypto is the only cryptocurrency stablecoin controlled by the European Union.
While describing some of the features of the new currency, the company said that it could execute an “almost-instant” payment procedure at near-zero charges. This is very different from the conventional crypto operations in use throughout Europe; most of these services are slow, even with the high transaction costs.
While speaking on the future of this coin, Juha Viitala: the Chair and CEO of Membranes Finance, said he is optimistic that the new coin will be acceptable by the EU populace and that it will be the beginning of more EU DeFi apps – and an opportunity for the people to grow their wealth.
In an interview with the press, the CEO stated that stablecoins are an integral part of any modern economy, especially the ones making efforts to align with the blockchain-propelled financial infrastructure.
He added that EU residents deserve a stablecoin that is fully backed by their traditional currency and fully controlled by EU economic laws. Viitala also believes that introducing EUROe into the EU financial system will attract more investors and lure them to the new possibility a DeFi economy can provide.
This development is coming at a time when the European economy is experiencing some challenges as a result of the Ukrainian-Russian war, which has affected major European economies, including the UK, which is said to be having the worse inflation rates that have led to massive loss of jobs and increase in food and prices of gas.
On the other hand, Viitala thinks that the launching of the EUROe makes them completely invisible to the intense risk experienced in the crypto market. He further revealed that the EUROe would first be introduced on the Ethereum platform before extending it to different blockchain networks.
Meanwhile, before now, another fintech company formally introduced their Euro stablecoin called the Euro Coin (or EUROC) sometime in June. Unlike the EUROe, the EUROC is regulated by the US regulatory authorities and has since been adopted by the Silvergate Bank. Like EUROe stablecoin, EUROC allows businesses that adapt to this payment method to gain access to Euro currency liquidity easily. This can carry out several financial transactions like trading, bill payments, or borrowing.
From information gathered from prominent industry analysts, as Viitala revealed, the EUROe will be kicking off on the Ethereum blockchain platform. But the data from one of the analysts specified that it would be launched on an ERC-20 token of the Ethereum blockchain.
The Bank for International Settlement Comments
The Bank for International Settlement has picked interest in the latest development. Reports from that quarter said that the bank officially called the Euro the second most significant currency in the world, after the US dollar.
They’d come about this fact based on the amount of Forex it attracts. According to data from the Bank for International Settlement’s survey in 2019, the discovered that Euro made up 32% of all currency traded.
Note that stablecoin and fiat-backed cryptocurrencies have had an age-long relationship in the crypto industry. A practical example of this is the Tether, which a pegged to the USD, and was first unveiled on the Bitcoin Omni Layer.
Also, recall that sometime in 2018, Ethereum variation of the USDT was introduced to the market, and four years after, it has risen to become the third biggest crypto by market cap. With this in mind, analysts are implying that the new EUROe stablecoin might toll the same path as the USDT with the European market as the primary target.
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