These Stablecoins Are Not Associated With US Dollars: Popularity, Value, And Potential

Stablecoin, a type of cryptocurrency whose value is tied to a stable asset or currency to avoid price volatility (photo: doc. pixabay)

JAKARTA - Stablecoin, a type of cryptocurrency whose value is tied to a stable asset or currency to avoid price volatility, is generally tied to the US dollar. However, there are also stablecoins that are not tied to the US dollar and use other currencies as the basis for their value.

Here are the stablecoins that are not tied to the US dollar, which have been quite popular in the world.

1. Euro Tether (EURT)

Tied to the euro (EUR), the official currency of 19 member states of the European Union. EURT is issued by the Tether company, which also issues the US dollar-tied stablecoin Tether (USDT).

EURT was launched in November 2019 as an alternative for users in the Eurozone who wish to avoid fluctuations in the US dollar exchange rate. However, while EURT is still not as popular as USDT, it is growing in value as adoption increases in the Eurozone area.

2. Yen Tether (JPYT)

Tied to the Japanese yen (JPY), Japan's official currency. JPYT is issued by the Tether company and launched in July 2020. JPYT targets users in Japan and the Asian region who wish to use stablecoins for transactions and investments in their local currency. Although still in its infancy, JPYT has shown significant growth and is gaining popularity in the region.

3.Gemini Dollar (GUSD)

It is tied to the US dollar and traded on the Gemini crypto exchange, but its value is also governed by a smart contract to reflect the value of the Canadian dollar (CAD). GUSD is issued by the Gemini company, which was founded by the Winklevoss brothers.

GUSD was launched in September 2018 as an alternative for users in Canada who wish to avoid fluctuations in the US dollar exchange rate. Although not yet as popular as stablecoins tied to the US dollar, GUSD continues to grow and shows potential as a stablecoin tied to non-US currencies.

The value and capacity of stablecoins that are not tied to the US dollar are still relatively small compared to stablecoins tied to the US dollar such as Tether (USDT) or USD Coin (USDC). However, they continue to attract attention as an alternative for users in certain regions who wish to avoid fluctuations in the US dollar exchange rate or use their local currency in transactions and investments in cryptocurrencies.

Meanwhile, there are several euro (EUR)-linked stablecoins. Some of them include:

1. EURS (Euro STASIS)

EURS or Euro STASIS is a stablecoin that is linked 1:1 to the euro (EUR). Every EURS token issued is guaranteed by a euro reserve which is placed in a bank account that is regularly audited. EURS is published by the financial technology company STASIS, based in Malta.

2. USDE (USDX Euro Protocol)

USDE or USDX Protocol Euro is a stablecoin that is also linked 1:1 to the euro (EUR). USDE is published by USDX Wallet, a crypto wallet that supports crypto and stablecoin transactions. Every USDE token is backed by a euro reserve which is placed in a strictly supervised bank account.

3. EURN (Nubitalk Euro)

EURN or Nubitalk Euro is a euro-linked stablecoin (EUR) issued by Nubitalk, an Estonia-based financial technology company. EURN is tied to euros in a ratio that can vary, for example, 1 EURN can be tied to 1 EUR, 2 EUR, or 0.5 EUR depending on the user's choice.

On June 22, 2022, Tether announced the launch of GBPT, a stablecoin that will be issued initially on the Ethereum blockchain. GBPT is pegged to the British pound sterling, the world's oldest fiat currency, first issued in 1694.

“GBPT will be a stable digital asset pegged 1:1 to the British Pound. GBPT will be built by the trusted team of developers behind tether USDT and operate under tether.to," Tether announced as quoted by Bitcoin.com. “The creation of the GBPT will put the British Pound on the blockchain and provide a faster and cheaper asset transfer option.”

However, to date, no stablecoin has been directly linked to the British pound. However, there are a number of cryptocurrency projects that are planning or claiming to have stablecoins linked to the British pound, but they are still in the development stage or have not yet been officially launched.

For example, several projects claiming to provide stablecoins linked to the British pound include GBP Stablecoin, LBXPeg, and QGBP.

As adoption and use increase, the value and capacity of these non-US dollar-linked stablecoins could grow and become more significant in the global cryptocurrency ecosystem. However, keep in mind that as with other cryptocurrencies, the stability and popularity of these stablecoins can also fluctuate in highly dynamic markets.