EuroCoin or EUROC, a Euro based stablecoin from Circle, is set to be launched on the 30th of June as a complement to USD Coin (USDC) for everyone that like to spread the risk.
Circle is the same consortium that launched USDC, a stablecoin that is pegged to the US dollar. Given that USDC has been able to maintain its peg since 2018, it is expected that the new stablecoin will work just as well. EUROC is meant to work on a full-reserve model, where every token issued will be redeemable for a Euro. This is a highly stable system since it can survive bank runs. Because USDC follows this model, it has been able to achieve a market cap of over $55 billion and is the fourth most valuable cryptocurrency.
Benefits of the EUROC
As a cryptocurrency, EUROC can be bought and sold 24/7 without the need for intermediaries like banks. The coin also moves at internet speeds and can create an entire shift in the Forex market. Given that the EUR/USD pair is currently trading at its lowest point in several years, there couldn’t be a better time to launch the EUROC coin. These two currencies represent the largest economies on the planet, which is why they are heavily traded in Forex markets. With the EUROC and USDC, traders will be able to buy and sell the two currencies at any time through crypto exchanges. It is important to remember that the European Central Bank (ECB) isn’t as quick to raise interest rates as the Federal Reserve.
The Euro is clearly one of the most important currencies in the world, and the EUROC is going to make it a lot easier to use. Since the altcoin is backed 1:1 by actual Euros, it is just as good as the fiat currency. Unlike fiat currencies, the stable coin can be transferred quickly and for a very low cost. The fast settlement time of the coin will make it highly preferable for cross-border money transfers.
Like USDC, the EUROC will be a great cryptocurrency to hold during times of serious market volatility. As long-time followers of Crypto Lists already know, it is a lot easier to convert cryptocurrencies to stable coins than to fiat currencies. That means traders can quickly exit the market and re-enter once prices stabilize or start to rise.
Which Blockchain Will EUROC Use?
Like USD Coin, this stablecoin will be launched on Ethereum and will work as an ERC-20 token. However, the developers are planning to expand to other blockchains later in the year. The coin can be integrated with applications that are based on the respective blockchains.
The launch of EUROC is being supported by many players in the greater crypto community. Some of them include:
Developers can start integrating with the EUROC smart contract already. On the launch date of the stable coin, businesses will be allowed to start minting the altcoin by depositing Euros to their Circle Account via the Euro SEN Network of Silvergate. Later, more deposit options will be made available. Using the Circle Account, holders of the stablecoin will also be able to redeem their Euros and burn EUROC.
As an ERC-20 token, this stable coin will work broadly with any ERC-20 compatible wallets, protocols, and blockchain services. As noted earlier, the coin is set to be launched on other blockchains later in the year, and that means it will be compatible with other blockchain services.
Circle, the consortium behind USDC, is planning to launch EUROC at the end of June. This is a stablecoin that will be backed 1:1 with actual Euros, meaning holders of the token can redeem their Euros at any time. Given that it will follow a full-reserve model, the coin will always be pegged to the Euro, the official currency of 19 EU-countries and over 340 million people. It will initially be launched on the Ethereum blockchain, but later on, Circle will launch it on other blockchains as well. The coin has received a lot of support from crypto exchanges, crypto platforms, DeFi platforms, and crypto wallets.
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Do you want to learn more about stablecoins? Check out the gold backed PAXG, USD Coin (USDC) that’s also from the same company as EUROC, along with Binance USD (BUSD) and Tether (USDT). They are the big ones, and click here to see a full overview of 45+ stablecoins.