#eurocoin #stablecoin #crypto #circle
Circle Internet Financial, the issuer of USD Coin ( USDC ), announced the launch of a Stable coin, pegged to the euro amid growing demand for Stablecoin.
Euro Coin, or EUROC, will be available for trading on June 30. Like the USDC , the Euro coin is a regulated stable coin backed by the euro. What does this mean? This means that each EUROC token in circulation has its equivalent in euros, held in a bank.
Silvergate Bank, which has positioned itself as a crypto-friendly bank, has been announced as the initial custodian of the coin.
The coin will be launched on the Ethereum blockchain as an ERC-20 standard token.
The goal of the introduction of Stablecoin was to increase businesses’ access to liquidity in euros, using it for trading, lending and payments.
The euro is the world’s second-largest currency by volume, introduced in 1999 in the eurozone, and is the common currency for 19 countries.
Stablecoin is a crypto-asset that is pegged to an asset with a stable price, like fiat currency or a precious metal.
Stablecoins are specifically designed to maintain a fixed price and can help traders avoid high levels of cryptocurrency volatility.
Coins are often stored on cryptocurrency exchanges so that traders can simply and quickly respond to market innovations.
With Stablecoin, users can open and close positions without switching to fiat. Payments and transfers around the world, as well as passive income from DeFi’s staking, are advantages of stablecoin.
However, there are disadvantages, which pose risks, and you need to be aware of them: first of all, not all stablecoins can maintain pegging and store resources, and second, stablecoin is still a cryptocurrency, so there are risks involved. To insure against risks you need to diversify your portfolio and carefully study all the pitfalls before making a deal.
The demand for payments in stablecoins is growing, as evidenced by the opening of special Circle business accounts for transactions in USDC.
Stablecoin has a market capitalization of $54.2 billion.
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