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November 11, 2022

What Is Euro Coin (EUROC) and How Do I Use It?

What Is Euro Coin (EUROC) and How Do I Use It?

As everyone knows, the cryptocurrency markets are highly volatile places. Drastically fluctuating prices are what enable some people to generate a large amount of money from little investment. However, this volatility also puts off investors looking for more secure and stable currencies to invest in. This is where stablecoins such as Euro Coin (EUROC) and USD Coin (USDC) come in.

Launched back in June 2022, Euro Coin (EUROC) became the first stable coin backed 100% by the Euro. The aim of EUROC is to maintain a value equivalent to €1 at all times. This is achieved by backing the currency with Euros. For every EUROC printed, €1 is added to euro-denominated, U.S-regulated bank accounts.

What Is A Stablecoin?

As its name suggests, a stablecoin is a cryptocurrency that is designed to have a stable price. For mass-market adoption to occur and to draw in cautious investors, the cryptocurrency markets need to offer both volatile and stable asset classes. Stablecoins provide familiarity for those who don’t understand the pricing of traditional cryptocurrencies while giving familiarity to investors who haven’t yet ventured into the space.

Seasoned crypto investors may also turn to the Euro stablecoin to avoid volatile market swings without having to remove their crypto from the market. Before stablecoins, when market conditions were rough, investors would have to ride the storm or swap their crypto for fiat currency to get out of the market. Now, with a Euro stable coin, they can remain in the market without the risk of unpredictability.

Usually, these currencies hold a value that is similar to fiat currencies, such as the U.S Dollar and Euro. This price parity is achieved by backing said stablecoins with fiat currency in regulated bank accounts.

How Does The Euro Crypto Coin Work?

EUROC is an ERC-20 token, meaning it is built on the Ethereum blockchain. The advantage of being developed this way means it can be used with any ERC-20 compatible wallet, protocol, or blockchain service. As one of the most dominant and widely accepted tokens, Euro Coin is available to a mass-market audience, making it easily accessible.

There are plans to further extend the reach of EUROC, as there are some challenges and limitations faced by the Ethereum blockchain. Furthermore, the more blockchain networks EUROC works on, the greater volume of adoption can occur.

Currently, the U.S Dollar is viewed as the reserve currency of the world, with the vast majority of transactions taking place using it. However, with the introduction of EUROC and a large number of countries using the Euro as fiat currency, it’s not inconceivable for the Euro to grow in popularity, and the introduction of the Euro Coin will only expand its potential.

Euro Coin For Businesses

As the adoption of cryptocurrency expands, more and more businesses are looking to complete transactions using digital currency. Whether they’re buying from vendors or selling goods to consumers, the ability to transact in Euro Coin will open up new cost-effective revenue streams.

Another benefit of the Euro Coin for businesses is the ability for people outside of the Euro Zone to use it. Cryptocurrency removes the need for an intermediary, such as a bank, meaning no costly transaction fees for people using different currencies. Now, anyone in the world can freely transact in Euros, whether it’s their local currency or not.

Overall, it makes making and receiving payments fast, efficient, and easy for businesses, vendors, and employees.

Euro Coin For Individuals

With the introduction of Euro Coin crypto, individuals anywhere in the world can easily transact in Euros without hefty bank fees and exchange rates. As an ERC-20 token, EUROC can easily be purchased using fiat currency, then sent to friends, and family, or used for day-to-day purchases. This functionality is especially beneficial for people who live outside of the Eurozone, and wish to send money to people in Euros.

Using this method enables people to keep more of the money they earn by removing the restrictions and transaction fees put in place by banks and financial institutions.

Who Created Euro Coin?

EUROC was developed by Circle – the same company behind the launch of USDC. EUROC follows the same reserve model as USDC, which has become one of the most trusted and used stablecoins with over $50 billion now in circulation.

With a proven track record of introducing fiat-backed stablecoins, it is anticipated that the influence of EUROC will continue to grow with individuals, businesses, exchanges, institutional traders, and the wider web3 ecosystem set to benefit.

In Summary

Stablecoins will be crucial in the mass adoption of cryptocurrency. Price parity and fiat-backing create trust and stability that crypto-skeptics feel more comfortable with. Furthermore, they tackle everyday challenges many individuals and businesses face, such as slow transaction speeds, processing times, poor exchange rates, and high fees.

Whether you’re inside the Eurozone or not, EUROC empowers you to transact in Euros easily and freely without using a middleman, such as a bank or financial institution.

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