Cosmos EUR stablecoin project to unwind after 2 years

1 year ago

"The deficiency of real-world applications for blockchain has led to debased request for non-USD stablecoins," e-Money wrote.

Cosmos EUR stablecoin task to unwind aft 2 years

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According to a post connected January 9, e-Money — a stablecoin task successful the Cosmos ecosystem — said it would discontinue the issuance of its euro stablecoin EURR effectual March 6, 2023. In explaining the decision, e-Money wrote:

"The deficiency of real-world applications for blockchain has led to debased request for non-USD stablecoins. The upcoming European MiCA authorities is expected to hinder the scalability of Euro-backed stablecoins and bounds concern opportunities successful the sector. European MiCA authorities successful its existent signifier favors commercialized banks arsenic aboriginal issuers of Euro stablecoins, hurting innovation successful the European Union."

Until the deadline, users tin redeem their EEUR by swapping their stablecoins for integer assets specified arsenic OSMO, ATOM, oregon USD Coin (USDC) connected Cosmos decentralized speech Osmosis (OSMO). For amounts implicit 100,000 EEUR, e-Money recommends nonstop redemption for euros with e-Money A/S. "This requires KYC/AML and you should expect astir 5 concern days for processing. Please interaction [email protected] to redeem utilizing this option," the steadfast wrote.

Important Announcement: EEUR Stablecoin Unwind

e-Money A/S has decided to cease issuance of its EUR backed stablecoin

➡️All stablecoins stay afloat backed and tin beryllium redeemed. Read our Medium station & prime 1 of the listed redeem options ⤵️https://t.co/1yneUFrD7U

— e-Money (@emoney_com) January 9, 2023

e-Money was founded successful 2017 connected the Cosmos blockchain and launched its mainnet successful aboriginal 2020. The institution antecedently worked Financial Services Authority and Ernst & Young to "develop a transparent and compliant exemplary for stablecoins that could accommodate antagonistic involvement rates successful the Euro-zone." e-Money initially began issuing EEUR stablecoins successful 2020 utilizing Ethereum (ETH) bridging exertion and aboriginal incorporating Cosmos and Axelar.

"The crypto manufacture faced galore challenges successful 2022, with some centralized and decentralized entities experiencing difficulties. While e-Money was not straight affected, the stablecoin concern relies heavy connected integration with accepted finance, and fiscal institutions’ involvement successful cryptocurrency has waned pursuing the events of 2022."