European payment bank launches own stablecoin
European payment bank Banking Circle SA has launched a digital currency linked to the euro. The EURI stablecoin, like the other coins, has been developed using blockchain technology. It allows users to make payments whenever they need to without being tied to bank opening hours.
Stablecoin was the first digital currency to comply with MiCA regulations. Mica is a set of rules for regulating the crypto assets market, the world’s first regulation to control the use of cryptocurrencies.
For Banking Circle, the EURI issue is the first such experience in digital money. Customers can use the token through the Binance crypto exchange. Later, the bank plans to launch the stablecoin on the Swiss platform CoinUT and other similar services.
Token transaction features
The use of Fireblock’s tokenisation engine with MPC-CMP technology enabled the issuance of the currency. This approach increased the security level of the EURI token and strengthened its competitiveness among dollar-stable coins.
According to Banking Circle, transactions with the token will work as follows:
– customers can exchange the Steiblcoin for conventional money;
– the bank holds the exchanged funds as cash or its equivalent;
– the bank guarantees the money against bankruptcy;
– EURI is compatible with the Ethereum and BNB Smart Chain blockchains;
– specialists will regularly assess the risks to the token, which will increase its security.
In addition, regulators are planning to audit the stablecoin in the near future. These measures are necessary to maintain a balance between electronic and cash transactions. As for bank customers, they can exchange EURI for standard euros at any time. The value is the nominal rate. In turn, the stablecoin is suitable for making settlements for various cryptocurrencies.
EU digital asset trends
Germany is also planning to launch a stablecoin. Deutsche Bank subsidiary DWS is developing the first government token, which will launch in 2025. The purpose of creating a stablecoin is to expand the list of services for clients. The digital currency will mainly target the investment community. At the same time, DWS expects the coin to be of interest to industrial companies in the medium term.
France is also preparing its digital asset with a link to the euro. To this end, a local company has teamed up with the Irish company DECTA Limited to develop the EURT steel coin. It will comply with all MiCA standards.
It is worth noting that the European crypto asset market is developing rapidly. The emergence of more euro-linked stablecoins strengthens the sector. Previously, the EU lagged behind the US in this respect, where there are a large number of dollar tokens.
