Does the world need Euro Coin? There are already stablecoins pegged to the Euro in the market. The difference here, however, is Circle. As the issuer of the well-regarded USDC, they have the reputation, the know-how, and the clientele to make this happen. Even with all of those advantages, it\u2019s the market that will decide if the world needs Euro Coin.<\/p>\n
Related Reading | Crypto Investors Find Safety In Stablecoins, Bitcoin, Ditch Altcoins En Masse<\/p>\n
On the project\u2019s page, they describe it as, \u201cEuro Coin (EUROC) is issued by Circle under the same full-reserve model as USD Coin (USDC), a trusted dollar digital currency with more than $54 billion in circulation.\u201d At first, Euro Coin will exist on the Ethereum blockchain, it\u2019ll be a traditional ERC-20 already compatible with everything out there.<\/p>\n
1\/ CIRCLE LAUNCHES EURO COIN: Today, we announced our 2nd major fiat-backed stablecoin, Euro Coin, which went live on Ethereum mainnet, and will be available to mint and redeem on June 30th. https:\/\/t.co\/vPZkItL0Fu<\/p>\n
\u2014 Jeremy Allaire (@jerallaire) June 16, 2022<\/p>\n\n
The Euro Coin will be \u201c100% backed by euros held in euro-denominated banking accounts so that it\u2019s always redeemable 1:1 for euros\u201d. The difference with regular euros is that EUROC will be \u201cavailable 24\/7 and moves at internet speed\u201d. The new stablecoin debuts on June 30th. \u201cBusinesses can mint Euro Coin straight from the source by depositing euros into their Circle Account using Silvergate\u2019s Euro SEN network.\u201d<\/p>\n
What\u2019s Euro Coin \u2019s Main Use?<\/p>\n
In a recent tweet, Circle CEO Jeremy Allaire summarized the product\u2019s value proposition. \u201cLike USDC, Euro Coin is being issued under a regulated framework for money transmission, under the same statutes that regulate USDC, with full-reserves in Euro, with the same security, liquidity and transparency that the market has come to expect from Circle\u201d. Does it solve a problem, though? Two words: foreign exchange.<\/p>\n
4\/ Euro Coin expands opportunities for payments, on-chain FX, trade finance, commerce and broader digital asset markets use-cases. The launch is symbolic of a shift in crypto markets towards greater and greater utility value from blockchain infrastructure.<\/p>\n
\u2014 Jeremy Allaire (@jerallaire) June 16, 2022<\/p>\n\n
Back to the project\u2019s page, Circle promises \u201cmulti-currency digital banking and near-instant foreign exchange, where daily volume in traditional markets can top $6.6 trillion globally.\u201d As we read a while ago in the Bitcoinist Book Club, \u201cThe Bitcoin Standard\u201d explains how that huge market emerges just to solve \u201cthe age-old problem of lack of coincidence of wants.\u201d As explained by Saifedean Ammous, the process goes like this:<\/p>\n
\u201cThe seller does not want the currency held by the buyer, and so the buyer must purchase another currency first, and incur conversion costs. As advances in transportation and telecommunications continue to increase global economic integration, the cost of these inefficiencies just keeps getting bigger. The market for foreign exchange, at $5 trillion of daily volume, exists purely as a result of this inefficiency of the absence of a single global homogeneous international currency.\u201d<\/p>\n
As Circle\u2019s numbers show, since the book\u2019s publication the foreign exchange market kept growing. And since we\u2019re far from living in a bitcoin standard, with a \u201csingle global homogeneous international currency,\u201d the foreign exchange will keep growing. And that\u2019s where Euro Coin comes in.\u00a0<\/p>\n\n
ETH price chart for 06\/16\/2022 on Kraken | Source: ETH\/USD on TradingView.com
\nThe New Stablecoin\u2019s Characteristics
\nWhere will the money that backs the operation be? \u201cCircle will hold euros in euro-denominated banking accounts at leading financial institutions, beginning with Silvergate Bank in the U.S.\u201d<\/p>\n
Related Reading | Crypto Company Circle Seeks To Become Global Digital Currency Bank<\/p>\n
\u201cBusinesses can use a free Circle Account to mint and redeem Euro Coin at no additional cost\u201d. Circle can afford to treat businesses like that because they\u2019re that big and established.\u00a0
\nCircle will audit the Euro Coin. \u201cGrant Thornton LLP will be issuing monthly attestations of Euro Coin reserves, starting with an attestation for the month of July 2022. Circle will publish the attestation reports on this webpage, with July\u2019s report being available to view online by the end of August 2022.\u201d<\/p>\n
It\u2019s also worth noting that the main criticism the project received was because they choose Ethereum to start with. However, Circle promises the Euro Coin in other blockchains soon. And considering that USDC exists in every smart contract-enabled blockchain under the sun, there\u2019s no reason not to believe them.<\/p>\n
Featured Image: Screenshot from Circle’s website | Charts by TradingView<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
Does the world need Euro Coin? There are already stablecoins pegged to the Euro in the market. The difference here, however, is Circle. As the issuer of the well-regarded USDC, they have the reputation, the know-how, and the clientele to make this happen. Even with all of those advantages, it\u2019s the market that will decide if the world needs Euro Coin.<\/p>\n
Related Reading | Crypto Investors Find Safety In Stablecoins, Bitcoin, Ditch Altcoins En Masse<\/p>\n
On the project\u2019s page, they describe it as, \u201cEuro Coin (EUROC) is issued by Circle under the same full-reserve model as USD Coin (USDC), a trusted dollar digital currency with more than $54 billion in circulation.\u201d At first, Euro Coin will exist on the Ethereum blockchain, it\u2019ll be a traditional ERC-20 already compatible with everything out there.<\/p>\n
1\/ CIRCLE LAUNCHES EURO COIN: Today, we announced our 2nd major fiat-backed stablecoin, Euro Coin, which went live on Ethereum mainnet, and will be available to mint and redeem on June 30th. https:\/\/t.co\/vPZkItL0Fu<\/p>\n
\u2014 Jeremy Allaire (@jerallaire) June 16, 2022<\/p>\n
The Euro Coin will be \u201c100% backed by euros held in euro-denominated banking accounts so that it\u2019s always redeemable 1:1 for euros\u201d. The difference with regular euros is that EUROC will be \u201cavailable 24\/7 and moves at internet speed\u201d. The new stablecoin debuts on June 30th. \u201cBusinesses can mint Euro Coin straight from the source by depositing euros into their Circle Account using Silvergate\u2019s Euro SEN network.\u201d<\/p>\n
What\u2019s Euro Coin \u2019s Main Use?<\/p>\n
In a recent tweet, Circle CEO Jeremy Allaire summarized the product\u2019s value proposition. \u201cLike USDC, Euro Coin is being issued under a regulated framework for money transmission, under the same statutes that regulate USDC, with full-reserves in Euro, with the same security, liquidity and transparency that the market has come to expect from Circle\u201d. Does it solve a problem, though? Two words: foreign exchange.<\/p>\n
4\/ Euro Coin expands opportunities for payments, on-chain FX, trade finance, commerce and broader digital asset markets use-cases. The launch is symbolic of a shift in crypto markets towards greater and greater utility value from blockchain infrastructure.<\/p>\n
\u2014 Jeremy Allaire (@jerallaire) June 16, 2022<\/p>\n
Back to the project\u2019s page, Circle promises \u201cmulti-currency digital banking and near-instant foreign exchange, where daily volume in traditional markets can top $6.6 trillion globally.\u201d As we read a while ago in the Bitcoinist Book Club, \u201cThe Bitcoin Standard\u201d explains how that huge market emerges just to solve \u201cthe age-old problem of lack of coincidence of wants.\u201d As explained by Saifedean Ammous, the process goes like this:<\/p>\n
\u201cThe seller does not want the currency held by the buyer, and so the buyer must purchase another currency first, and incur conversion costs. As advances in transportation and telecommunications continue to increase global economic integration, the cost of these inefficiencies just keeps getting bigger. The market for foreign exchange, at $5 trillion of daily volume, exists purely as a result of this inefficiency of the absence of a single global homogeneous international currency.\u201d<\/p>\n
As Circle\u2019s numbers show, since the book\u2019s publication the foreign exchange market kept growing. And since we\u2019re far from living in a bitcoin standard, with a \u201csingle global homogeneous international currency,\u201d the foreign exchange will keep growing. And that\u2019s where Euro Coin comes in.\u00a0<\/p>\n
ETH price chart for 06\/16\/2022 on Kraken | Source: ETH\/USD on TradingView.com
\nThe New Stablecoin\u2019s Characteristics
\nWhere will the money that backs the operation be? \u201cCircle will hold euros in euro-denominated banking accounts at leading financial institutions, beginning with Silvergate Bank in the U.S.\u201d<\/p>\n
Related Reading | Crypto Company Circle Seeks To Become Global Digital Currency Bank<\/p>\n
\u201cBusinesses can use a free Circle Account to mint and redeem Euro Coin at no additional cost\u201d. Circle can afford to treat businesses like that because they\u2019re that big and established.\u00a0
\nCircle will audit the Euro Coin. \u201cGrant Thornton LLP will be issuing monthly attestations of Euro Coin reserves, starting with an attestation for the month of July 2022. Circle will publish the attestation reports on this webpage, with July\u2019s report being available to view online by the end of August 2022.\u201d<\/p>\n
It\u2019s also worth noting that the main criticism the project received was because they choose Ethereum to start with. However, Circle promises the Euro Coin in other blockchains soon. And considering that USDC exists in every smart contract-enabled blockchain under the sun, there\u2019s no reason not to believe them.<\/p>\n
Featured Image: Screenshot from Circle’s website | Charts by TradingView<\/p>\n
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