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Circle Is Soon Launching Euro-Based Stablecoin, Euroq – WazirX Blog

Circle Is Soon Launching Euro-Based Stablecoin, Euroq – WazirX Blog

Note: This blog is written by an external blogger. The views and opinions expressed in this post are solely those of the author.

Circle, a global online financial company and creator of USD Coin (USDC), has said that it plans to launch Euro Coin, a fully reserve, euro-pegged stablecoin (EUROK).

Euro Coin is a regulated, Euro-backed stablecoin that will be available on June 30, 2022, and will be built under the same full-reserve model and built on the same foundation of trust, trust, transparency and security that created USDC Is. One of the world’s leading digital currencies.

introduction of euro coin Intends to build on Circle’s success in enabling frictionless financial value exchange and bridging the gap between crypto-native and traditional financial services. Businesses can use the EUROK token to transfer EUR liquidity on-chain, accept EUR payments worldwide and settle in minutes, and use the crypto capital markets to trade, lend, lend and more. can take advantage.

Starting with Silvergate Bank, Euro Coin is fully backed by a Euro-denominated reserve, stored conservatively in the custody of well-known financial institutions within the US regulatory perimeter.

Before going deeper, let’s take an overview of the global Internet finance firm, Circle.

an introduction to the circle

Circle, a Boston-based financial services firm that employs blockchain technology for peer-to-peer payments and crypto-related businesses, was founded in 2013.

What started as a consumer-facing P2P payment and cryptocurrency wallet and exchange software has turned its focus to commercial blockchain and crypto applications. In 2018, Circle announced the USD Coin (USDC), a stablecoin or equivalent, fair-valued asset backed by $1.

The Ins and Outs of EUROC

  • The Euro Coin (EUROC) will be fully backed by euro-denominated reserves held by financial organizations “within the US regulatory perimeter”.
  • EUROC joins the list of euro-backed stablecoins, which include Tether’s EURt and Stasis of Malta ‘urs. Tether is the creator of USDT, the largest dollar-pegged coin with a market valuation of over $70 billion, compared to $54 billion for USDC.
  • Euro Coin is a regulated, Euro-backed stablecoin based on the same full-reserve mechanism and foundation of trust, transparency and security that has established USDC as one of the most trusted digital currencies in the world.
  • Euro Coin will be available on the Ethereum network on June 30 as an ERC-20 standard token. Later this year, support for other blockchains is expected. According to the release, several platforms including Binance.US will support the stablecoin at launch.
  • EUR Coin and USDC are designed to open up new possibilities for on-change forex and multi-currency digital finance by allowing smooth, quick and low-cost transactions.

Who can use Euro Coin?

Clients can convert EUR to EUR Coin on exchanges, providing access to new digital asset trading pairs and near-instantaneous stablecoin FX.

Trade with Euro Coin and benefit from arbitrage possibilities in digital asset exchanges and Decentralized Finance (DFI).

Accepting Euro Coin payments will help you expand your consumer base and increase your cash flow. Pay suppliers, vendors and workers around the world with money that can be settled in moments.

Pay for items at participating retailers, send money fast to friends and family across borders, and use Euro Coins throughout the Web3 ecosystem.

Why was the euro chosen?

according to Bank for International Settlements (BIS), the Euro is the second largest fiat currency in the world in terms of foreign exchange turnover. Furthermore, according to the BIS 2019 Triennial Central Bank Survey, the euro was on one side of 32% of all currency exchanges.

The euro is the unified currency of the 19 members of the eurozone, introduced in 1999. Its dominance as a trading pair is reflected in the United States Dollar Index, or DXY, which has a weighting of 57.6 percent.

Why was the EUROC introduced as another stablecoin?

The launch of EUROC came at a time when users of stablecoins were experiencing a lot of speculation and lack of trust. These concerns follow fears of a collapse of the TeraUSD (USTC) stablecoin and Tether (USDT) falling below the dollar.

Unlike the EUROC, which will be backed entirely by reserves such as the USDC, the euro-pegged stablecoin’s reserves will be backed entirely by the euro.

This appears to be the primary difference between the EUROC and USDC, which is backed by cash and short-term US government bonds.

As a result, for every EUROC token in use, a reserve in euros will be held in custody at financial firms subject to US regulatory control. The first custodian of the EUROC stablecoin will be Silvergate Bank.

To learn more about stable coins, click here!

ground level

Businesses can start mining Euro coins on June 30th by depositing Euros into their Circle account on Silvergate’s EuroSen network. Later this year, more deposit options are likely to be available.

Euro Coin will be open to non-Circle account users after trading begins on a digital asset exchange and via the DeFi protocol. Click here to stay up-to-date on this!

Disclaimer: The cryptocurrency is not legal tender and is currently unregulated. Please ensure that you do an adequate risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information in this section does not represent any investment advice or the official position of WazirX. WazirX reserves the right, in its sole discretion, to modify or change this blog post for any reason at any time and without prior notice.

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