After the USDC they launched a stable currency in Euro

A stablecoin linked to the euro has just been announced at Circle Internet Financial, the organization that operates USDC. its name EUROC (Euro currency) It will be indexed on the European currency through Actual reserves held in financial institutions. L ‘USD Coin, the 4th largest cryptocurrencyIt has enjoyed great popularity since the collapse of UST Stablecoin (from the Terra blockchain).

Over the past month, more and more investors – including crypto “whales” (the biggest fortunes) – are preferring to leave stablecoins including Tether (first in capitalization) for USDC, which is less risky. Stablecoins differ based on their protocol for maintaining their indexing of the underlying asset they track, and the ability of their blockchain to withstand sudden moves in buying or selling volumes.

At $54 billion, the US dollar is no longer behind Tether at $69 billion. In capitalization, only Bitcoin and Ethereum are in the lead, but they are not stablecoins. The third place in the ranking goes to BUSD, the stablecoin of Binance. Perhaps soon, EUROC will take its place. Bad news for European projects, which are likely to be overshadowed by the circle symbol.

© CoinMarketCap

“One of the most reliable digital currencies”

While thousands of investors have lost their fortunes with the fall of underground vaults, Circle knows when it’s time to play his part Safe European stablecoin. With its model based on real euro reserves in banks, Circle differentiates its tokens from those of Terra which was based on an algorithm and protocol that played on supply and demand, with a neighboring cryptocurrency (the famous Luna).

“Euro Coin (EUROC) is a stablecoin backed by the euro, issued on the same full reserve model and built on the same pillars of trust, transparency and security that have made USDC one of the most reliable digital currencies in the world.”, refers to the US company’s press release. Reserves are identified as being in progress “Liquidity group and public debt in euros only”A spokesperson for the department said CoinDesk.

However, Tether Limited did not take a wrong position. The company with the largest stablecoin in the world is also in possession A stable currency based on the euro, EURt. However, its capital ($41 million) has nothing to do with its main symbol. To be able to protect your money in a stable currency in Euro, you have to turn to Angle Labs or Lugh (EURL), launched by the Casino Group in partnership with Société Générale and Coinhouse.

Europe’s stablecoin problem

In the US, the flood of freedom has its limits: Terra, UST, and Luna tokens are example. But in Europe, one could scold the opposite. In fact, the new European Cryptocurrency Regulations (MiCA) The nail is tightening on the side of stablecoin issuers, to the point that it will take a lot of effort for the token to compete with American players like Circle.

“We won’t have to cry in two years when the US dominates the market”And the Raphael Bloch commentedNewsletter Editor big whale. According to European parliamentarians, stablecoins pegged to the euro could undermine the currency European sovereignty its stability, but also its monetary policy. Circle will also certainly have to negotiate with the European Union if it wants to be able to democratize its token.

When will EUROC arrive?

To be able to exchange cryptocurrency on EUROC, the new Euro stablecoin from Circle, you have to wait until Next June 30th. At that time, the stablecoin (which was based on the Ethereum blockchain) will be available and several cryptocurrency exchanges have already announced that they will include it in 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.

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