What is the Euro Digital Currency and what is its use?

In June, the Circle Company announced that it was looking to introduce a euro-backed stablecoin in the US. EUROC reserves will be based on cash and government euro debt. The Euro stablecoin will be supported by Euro reserves held by US regulated financial institutions.

The financial regulatory institutions in the European Union area have established the legislation regarding EUROC issuers, a currency that will serve customers from a block made up of 27 member states.

Euro Coin was launched on June 30 on the Ethereum blockchain network in the form of a standard network-specific token, ERC -20. So we have a new stablecoin from Circle.

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EUROC Utility

It is the first time that crypto users are given the opportunity to transact non-stop in Euro, the second most common currency worldwide, through decentralized finance applications and the developing Web3 ecosystem.

Due to the fact that crypto exchanges list coins and tokens in parity with Tether (USDT) and Circle (USDC) for trading, stablecoins have become very popular. They are highly liquid, following digital currencies such as Bitcoin and Ethereum.

About 80-85% of crypto trading involves stablecoins because they provide a very easy method of changing trading positions without the need to change digital currencies to fiat or vice versa when closing positions.

EUROC will have the utility of a stablecoin that will facilitate transactions within the Ethereum blockchain for the time being.

Will EUROC be adopted by other blockchains?

The existing ecosystem partners on which the USDC and USDT stablecoins were built and integrated must find a way to integrate and make the new EUROC stablecoin available to users

The EUROC stablecoin can be purchased from centralized exchanges such as Bitpanda, Huobi, Bitget and later from the FTX and Binance.US platforms. Decentralized exchanges did not let themselves down either and listed EUROC, these are: Curve, UniSwap, DFX and Compund.

As a standard ERC-20 token, it is compatible with multiple wallets, protocols and services running within the Ethereum blockchain.

While ERC-20 is technically the most accepted standard for tokens, it comes with two disadvantages: slow transaction processing speed on the Ethereum network and the very high "gas" fee for each transaction performed.

But Circle won't stop at ERC-20, the company made an announcement noting that it expects to launch EUROC on additional blockchains later this year.

Digital currencies became very controversial with the decline of the Terra Luna project, which vaporized tens of billions of dollars of investors' money within a few days.

Before the collapse of Terra Usd, the European Union was already in the process of establishing and building legislation regarding digital currencies. The European Central Bank has also considered issuing a euro digital currency, called a central bank digital currency (CBDC) that can compete with digital stablecoins.

Circle's chief strategy officer Dante Disparte mentions that the partners of this project share the same values ​​as the liberal democracy of the United States of America and the European Union. Thus, the partners concluded that barriers to trade/transactions need to be removed.

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