EUROe allows easy-to-monitor and instant payments across the globe at non-zero cost.
Finnish fintech organization Membrane Finance has inaugurated EUROe, Europe’s first and exclusive EU-regulated full-reserve stablecoin and payment network.
EUROe converts a fiat Euro into a one-to-one pegged digital currency transactable on Ethereum, with prepared backing for an increasing number of blockchains. One EUROe stablecoin will always be one Euro. For every EUROe rolled out, at least one fiat Euro is present in a European Financial Establishment or bank, ring-fenced from Membrane Finance.
The international Payments industry helps approximately $240T transactions between people, enterprises, and administrative bodies. However, the infrastructure for money has not been able to develop to reach the new age customer’s requirements. These include issues like payments taking very long to conclude, the transaction charges being exorbitant, and using a massive amount of human interference.
EUROe allows easy-to-monitor and instant payments across the globe at non-zero cost. This will help individuals, enterprises, and governments leverage its services while preventing the risks and difficulties of exchanging and paying in unstable cryptocurrencies.
According to Juha Viitala, Chief Executive Officer and Co-founder of Membrane Finance, the introduction of a truly regulated EUR-based stablecoin is a monumental step for both the company and the European cryptocurrency market at large. Viitala goes on to say that the company envisions reaching out to the greater public with DeFi applications while making it convenient for Europeans to use a currency they have faith in.
EUROe is different from other Euro-pegged stablecoins in the sense that it recently acquired the Electronic Money Institution license from the FIN-FSA, future-proofing its participation in the marketplace ahead of the forthcoming European MiCA legislation. MiCA is known to be the most stringent administrative skeleton for virtual assets ever.
According to Viitala, regulation is key in making the asset legit and playing a part in making crypto and e-money alternatives a larger market.
In June last year, United States-based Circle Inc launched its euro-backed stablecoin but its Euro Coin (EUROC) was custodied by Silvergate Bank, a US-regulated body.
Stablecoins, or crypto tokens supported by fiat currency, have had a long and notable history in the crypto industry. The first US dollar stablecoin, Tether (USDT) was released for the Bitcoin Omni Layer with an Ethereum version in 2018.
Every EUROe transaction takes place on-chain, which means that it can record an immutable ledger. EUROe can now be enforced in a smart contract and transacted on Ethereum. Smart contracts are also self-implementing programs that spontaneously make payments or other actions on the blockchain based on a series of programmed attributes.
Membrane Finance intends to launch EUROe smart on several blockchains, like Solana, Polygon, and Arbitrum One.
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