Over the years, we have been introduced to a digital transformation, which has created and shaped communities around the world. Digital technologies have introduced newly evolved ways of how the world interacts, operates, and most of all, conducts exchanges. In the current economic hardship and the Covid-19 global pandemic, the European Union has had to face many operational and structural facts, one of them being the strength of the fiat currency; the Euro.
The European Economy Operates via a Flawed System
Since the introduction of the Euro, the currency has been in a consistent debate, regarding its strength and endurance within the global exchange.
This specific criticism is defined by a strategic error, showcasing a dominant flaw; specifically, the Euro not having a strong asset-backed united economy. The fault has been well argued for the fact that the creation of the Euro intended to mimic the firm stance and ability of the US dollar, yet the European Union is still divided via an economic standpoint between members.
Although opinions may vary, one cannot argue the strength of the organizational base of the US economy and consistency of the USD currency portraying a ‘robust’ stance even with the turmoil of changes the year 2020 has presented.
‘This is why the US economy was more prepared for the Covid-19 pandemic. The European economy operates via a different…maybe, one could say, a flawed economic system, and therefore it becomes more vulnerable to change of regulations and stabilize operations during such times’ – Simone Mazzuca
With that in mind, the economic hardship for individuals and businesses within the EU could be reduced by the creating regulations which embrace current and future digital technological possibilities.
‘The basis of Europe has a strategic position through the exchange and global power, however, in its current stance with addition to BREXIT, Europe finds itself in an even more vulnerable position’ – Simone Mazzuca
Henceforth, the development of stablecoins comes at the right time, especially when international financial policies seem to be polarized by different financial variables and the inflationary nature of the Fiat.
This is why Mr Mazzuca created EURST, a USD asset-backed and live audited stablecoin. The newly developed digital currency from Wallex Trust represents 1€ worth of USD, secured by the accounts of the federal reserve and Wallex Trust itself.
EURST Presents Opportunities for a Better Economy
Issued as a token on the Ethereum network according to the well-established ERC20 standards, the advanced capabilities of blockchain technology enables users to conduct faster and more secure transactions. This is enabled through the use of smart contracts, which digitize deposited funds that are held in a segregated account by the issuer. Thus, empowering users to transact their money without the high costs and lengthy delays of the current financial system.
‘EURST can be used as a logistical background for the representation of the Euro’ – Simone Mazzuca
Even more, blockchain technology enables EURST to be fully transparent and live audited as transactions are recorded on the digital ledger, in addition to having regular third-party audits.
This presents the ability not solely to bring transparency and security, but also allows users to store their funds within a trusted Custodian, Wallex Custody. Through the use of opening an account within Wallex Custody, users can benefit from additional security and privacy while maintaining fluidity in the deposit, transfer or withdrawal of personal funds convertible to any currency of choice within a quick and borderless matter.
In conclusion, EURST presents itself with opportunities and possibilities for a better economy, and, we highlight some dominant features:
- The protection of wealth from losing value in relation to the Euro may use the stablecoin to save money without opening a bank account in Europe
- Users wanting to deposit funds to cryptocurrency exchanges for trading may use EURST instead of Fiat.
- Oversees workers may use EURST to bypass the expensive transfer fees charger when making fiat remittances to their family back home.
Following the above-mentioned advantages, EURST does indeed portray the possibility and opportunity to bring a sort of ‘chameleon’ option for operations with the Euro currency. The transparency and security of the stablecoin, EURST, is that it brings and gives support to individuals and businesses to operate successfully and this, within an economy that is yet to provide us all with reassurance.
