Place/Date: - January 10th, 2023 at 9:45 am UTC · 3 min read
Source: Snowfall Protocol
The digital euro has been proposed in theory for many years. Since October 2021, the European Central Bank (ECB) and the national central banks of the euro area have been investigating the Euro Digital project.
Finally, while the investigation continues in 2023, the ECB plans to launch the Digital Euro in autumn 2023. The Governing Council of the project also recently approved the design and distribution strategy of the Digital Euro. As central banks like the ECB jump on the crypto bandwagon, that raises a big question mark for stablecoins like Tether.
On the other hand, cryptocurrencies with strong use cases, such as Snowfall Protocol (SNW), will find even more investors.
The real purpose of stablecoins like Tether is to connect the legacy world of finance and the cryptocurrency universe. Stablecoins exist to solve the problem of cryptocurrency volatility that has plagued the market since its inception. Because they are tied to fiat currencies, they mitigate the problem while being censorship-free like Bitcoin. Stablecoins like Tether and Binance USD exist to allow cryptocurrency users to enjoy the benefits of digital currencies such as fast and low-cost transactions, while eliminating the volatility that cryptocurrencies struggle with. Cryptocurrency users have been able to transfer their investments to companies like Tether when the cryptocurrency market has been volatile and withdraw the funds when the cryptocurrency markets are rising.
However, with the advent of the digital euro, there is no need for a gold standard like stablecoins. The digital euro is a cryptocurrency equivalent to one euro. Therefore, it is a stablecoin itself. Have you ever used any cryptocurrency other than stablecoin when you can deposit your funds directly in digital euros? Therefore, the introduction of the digital euro threatens the existence of stablecoins like Tether.
In other news, Snowfall Protocol (SNW) has carved a niche in the market even before its release. It’s an interop project that has already raised over $3 million from the market and shows no signs of ending. It has attracted so much attention from investors that phase 2 of the sale had to be completed a day early due to tokens running out. The digital euro can be added to Snowfall Protocol (SNW) cross-bridges. This allows users to transfer their funds from a cryptocurrency, to the most trusted stablecoin in the cryptocurrency market, Digital Euro.
Snowfall Protocol (SNW) will launch on February 3, 2023 and is expected to offer its investors a return of more than 1000%. With the launch of Digital Euro, platforms like Snowfall Protocol (SNW) will attract even more interest from investors who can easily and quickly transfer their assets from one blockchain to the next.
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