after USDC they launch euro stablecoin

A stablecoin linked to the euro has just been announced by Circle Internet Financial, the organization that manages the USDC. His name is EUROC (euro currency) and its indexation of the European currency will be carried out actual reserves held in banks. L ‘USD Coin, the fourth largest cryptohas enjoyed a resurgence in popularity since the implosion of UST stablecoin (from Terra blockchain).

In the last month, more and more investors – including the “whales” of the cryptocurrencies (the largest fortunes) – prefer to leave stack coins including Tether (the first in capitalization) to the USDC, which is considered less risky. Stablecoins are different based on their protocol for maintaining their indexing to the underlying asset they track, and their blockchains ability to withstand sudden movements in buying or selling volumes.

At $ 54 billion, the USD Coin is no longer far behind the $ 69 billion Tether. In capitalization, only Bitcoin and Ethereum are ahead, but they are not stack coins. Third place in the rankings goes to BUSD, Binance’s stablecoin. Maybe soon EUROC will find its place. Bad news for European projects if the Circle token is likely to overshadow.

© CoinMarketCap

“One of the most reliable digital currencies”

While thousands of investors have lost fortunes with the fall of UST, Circle knows when it’s time to play its part with a secure European stable coin. With its model based on real euro reserves in banks, Circle distinguishes its tokens from those of Terra, which was based on an algorithm and a protocol that played on supply and demand, with an adjacent cryptocurrency (the famous Luna).

“Euro Coin (EUROC) is a regulated, euro-backed stable currency, issued on the same full reserve model and built on the same pillars of confidence, transparency and security that have made the USDC one of the most trusted digital currencies in the world. “, states the press release from the US company. Reserves are indicated as being “a set of cash and government debt in euros only”told a Circle spokesman CoinDesk.

However, Tether Limited is not taken on the wrong leg. The company that owns the largest stablecoin in the world is also in possession of a stablecoin based on the euro, EURt. However, its capitalization ($ 41 million) has nothing to do with its flagship token. To be able to protect your money in a euro stablecoin, contact the startup Angle Labs or the Lugh (EURL), launched by the Casino group in collaboration with Société Générale and Coinhouse.

The problem of stack coins in Europe

In the United States, the overflow of freedom has its limits: the example of Terra and its UST and Luna tokens. But in Europe one could blame the opposite. In fact, the new European Cryptocurrency Regulation (MiCA) tightens the screw on the side of stablecoin issuers, to the point that it will require a great deal of effort for a token to be able to compete with US players like Circle.

“We do not have to cry in two years’ time when the United States will dominate the market”, commented Raphaël Blocheditor of the newsletter The big whale. According to European parliamentarians, stablecoins linked to the euro could undermine European sovereignty and its stability, but also its monetary policy. Circle will certainly also have to negotiate with the EU if it wants to be able to democratize its symbol.

When will EUROC arrive?

To be able to exchange cryptocurrencies in EUROC, Circle’s new euro stablecoin, you have to wait until June 30 next. By that time, stablecoin (which was based on the Ethereum blockchain) would be available, and many cryptocurrencies have already announced that they will integrate it into their list of available tokens.

We note the presence of Binance, Bitstamp, FTX and Huobi Global. Ledger or even MetaMask will accept it on their Wallet and Uniswap, Curve, DFX or even Compound on DeFi.

Leave a Comment