Membrane Finance, a financial technology company based in Finland, has launched (1) EUROe, the world's first and only full-reserve stablecoin & pay channel to be regulated by the European Union.
EUROe is a digital currency that turns one fiat euro into a one-to-one pegged digital currency that can be transacted on Ethereum. It also has support ready for an expanding number of blockchains.
The value of one EUROe stablecoin will never change from one Euro. At the very least, one fiat euro is held in a European Financial Establishment or bank separated from Membrane Finance for every single EUROe distributed.
The worldwide payments sector facilitates over 240 trillion dollars' worth of transactions annually between individuals, businesses, and governmental organizations.
However, the architecture for cash has yet to advance to the point where it can satisfy customers' expectations in the modern day. These problems include the completion of payments taking an extremely lengthy time, the transaction fees being expensive, and the requirement of a significant degree of human intervention.
Payments may be made instantly and easily monitored around the globe using EUROe at a fee that is not zero. This will let people, businesses, and governments exploit its services while avoiding the dangers and hassles of exchanging and transacting in volatile crypto currencies.
As per Juha Viitala, Chief Executive Officer & Co-founder of Membrane Finance, the launch of a highly controlled EUR-based stablecoin is a momentous milestone for the firm and the European crypto currency sector as a whole.
Viitala continues by saying that the business intends to reach out to a broader public with DeFi apps while making it more straightforward for Europeans to utilize a currency they trust.
EUROe is distinct from other Euro-pegged stablecoins because it has just recently obtained Electronic Money Institution authorization from the FIN-FSA. This license ensures EUROe's continued involvement in the market in the face of impending European MiCA regulation.
It is widely acknowledged that MiCA is the most severe administrative skeleton yet developed for virtual assets.
According to Viitala, legislation is essential to legitimize the asset and contribute to the market's growth for crypto currencies and alternative forms of electronic money.
About Stablecoins and Smart Contracts
Within the realm of crypto currency, stablecoins, also known as crypto tokens backed by fiat cash, have a history that is both extensive and noteworthy. Tether (USDT), the world's first dollar-pegged stablecoin, was introduced for use on the Bitcoin Omni Layer in 2015, and a counterpart for Ethereum followed in 2018.
Because each EUROe transaction is completed on the chain, the EUROe blockchain can record unchangeable transactions in its ledger. A smart contract with EUROe may now be transacted and enforced on the Ethereum platform.
Smart contracts are self-implementing algorithms that automatically perform payments or other activities on the blockchain based on a set of specified qualities. These payments and actions can be anything from buying something to voting on an issue.
Membrane Finance plans to offer EUROe on many blockchains, including Solana, Polygon, and Arbitrum One, soon.