film finance Launch of EUROe, an EU-regulated crypto stablecoin designed to give businesses, individuals and foundations access to cheaper, faster and more stable digital native money.
Finnish fintech company Membrane Finance has launched a EUROe full reserve stablecoin and payment network.
EUROe is pegged 1:1 to Fiat Euros and is tradable on the Ethereum blockchain. For every EUROe issued, there is at least one legal tender Euro in a European financial institution or bank insulated from Membrane Finance.
Unlike the dramatic highs and lows experienced in the value of other cryptocurrencies, stablecoins are usually valued against silver, gold, or in this case, fiat currency, so they hold a stable and constant value. often do.
While this reliability is certainly an advantage, it is not the sole focus of this issuance.
Redefining cryptocurrency
The global payments industry $240 trillion in deals Year after year, people, businesses and governments meet but the infrastructure of money has failed to evolve to meet the needs of the modern consumer. Settlements take too long, cost too much, and involve too much human intervention.
In light of the solution, EUROe enables payments to be sent worldwide transparently, at near-instantaneous speed and at near-zero cost.
As a result, stablecoins offer individuals, businesses and governments a way to transact without incurring the risks and complexities of volatile cryptocurrency conversions and payments.
Juha VitalaCEO and co-founder of Membrane Finance, describes the launch as “big news for both us and the wider European cryptocurrency market and community.”
“We want to bring decentralized finance to the masses and make it as easy as possible for Europeans to use the currency they know and trust,” he continues.
“This launch is the result of a two-year effort to create the most robust and compliant European payments system that can leverage decentralized finance and other emerging technological innovations.”
Regulatory approval
EUROe is one of the first europegged stablecoins to receive an Electronic Money Authority (EMI) license from the EU. Finnish Financial Supervisory Authority (FIN-FSA).
Given the upcoming European MiCA legislation, the FIN-FSA approval and EMI license for stablecoins will ensure compliance with MiCA, which is projected to be the toughest regulatory framework for digital assets to date. increase. EUROe eliminates operational and financial risks resulting from cryptocurrency volatility and foreign exchange risk.
“Regulation is key to legalizing and bringing cryptocurrency and e-money alternatives to the broader market,” Viitala continues.
“There is nothing more important than trust in the financial system, but society needs to move away from traditional methods and use modern technology to provide a more accessible, stable and efficient financial system. ”
clear data
All EUROe transactions are done on-chain via the Ethereum blockchain. This method records each transaction in an immutable ledger. In this way, blockchain can provide complete and accurate data on the movement of assets and transactions.
Such insights enable involved parties to better understand their counterparties, their transactions, and their assets, and their applicability can extend to a wide variety of financial cases, such as credit and loan decisions. there is.
“Stablecoins will be an integral part of the transition to blockchain-based money infrastructure, and Europeans will move from the EU to a fully-prepared euro stable, regulated by EU-based financial authorities. You deserve your coin,” explains Viitala.
“EUROe hopes to bring more people to decentralized finance (DeFi), who were previously unable or worried about the volatility of cryptocurrencies.”
EUROe smart contract
With the launch, users will be able to implement the EUROe stablecoin in smart contracts and trade on Ethereum. A smart contract is a self-executing program that automatically performs payments and other actions on the blockchain based on a programmed set of parameters.
Smart contracts can automatically and autonomously source information and enforce agreements from many external sources, making the payment process much leaner and with fewer middlemen.
For example, a smart contract may trigger an automatic transfer of asset ownership upon receipt of payment without the need for an intermediary. Membrane Finance plans to release EUROe smart contracts on more and more blockchains.
The company recently raised €2 million in funding from a Finnish seed-stage venture capital firm. Maki.vcThe company confirms its current work on tokenization platforms and bridge technology. This means that users can make cross-chain transfers of Euro e without holding native gas assets.