JAKARTA - Finland's company, Membrane Finance, has released fully reserveed stablecoins backed by the euro. This was revealed in a February 2 blog post from the company. The company was licensed by the Finnish Financial Supervisory Authority (Fin-FSA) and claimed that the new "EURoe" coin was the "first and only crypto stablecoin regulated by the EU."
US-based Circle Inc. released its own euro-backed stablecoin in June, but its Euro Coin (EUROC) was initially kept by Silvergate Bank, an entity regulated by the US.
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
Each EUROe token is backed by "at least one Euro fiat, in a European financial institution or bank, is fenced off from Membrane Finance," according to a company post quoted by Cointelegraph.
The company believes it will allow for an "almost instant pay" with costs approaching zero, in contrast to the high cost and slow pace of traditional finance.
Membrane Finance CEO Juha Viitala expressed hope that regulated EUROe coins would encourage more Europeans to develop their wealth through the use of decentralized financial applications (DeFi).
The stablecoin is an important part of the transition to blockchain-based money infrastructure, and Europeans are entitled to full reserve euro stablecoins from the EU and regulated by EU-based financial authorities. EUROe hopefully brought more ordinary people to DeFi, who previously could not or worried about cryptocurrency volatility," Viitala said, quoted by Cointelegraph.
EUROe will initially be available on Ethereum, with support for additional blockchain networks planned for the future.
The crypto stablecoin, or token backed by fiat currency, has a long and famous history in the crypto world. According to CoinMarketCap, the first US dollar stablecoin, Tether, was originally released for Bitcoin Omni Layer, with the Ethereum version arriving in 2018. It is now the third largest cryptocurrency by market cap.
On January 19, Circle and the team behind the decentralized exchange Uniswap released a report claiming that blockchain-based foreign exchange could reduce the cost of remittances by 80%.
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