USDC [USD Coin] is the second largest stablecoin after USDT [USD Tether] pegged to the US dollar. Circle issued USDC and has now introduced Euro Coin pegged with Euro. Every circulating EUROC token has an equal denominated reserve in hold at some US-regulated financial institution. Stablecoins demand is escalating, especially in a bear market. Traders can quickly liquidate in a highly volatile ambiance. Therefore Circle released officially a euro counterpart.
In the US, the crypto adoption percentage is high but is gaining popularity amongst Millennials and Zoomers in Europe. EUROC can become the biggest stablecoin in Europe. You can visit ZenGo to learn more about stablecoins quickly. Download the Crypto wallet app, so you can gain access to your digital assets 24/7 for quick trades. It is a keyless wallet with robust security.
How Euro coin maintains its pegged one euro value?
Investors buy 1 EUROC with fiat currency [equivalent to 1 Euro]. The fiat currency is held as ‘Euro’ and the equivalent of 1 EUROC is minted. When you sell the 1 EUROC, you receive the stored Euro back from storage. Once the fiat currency is transferred to your bank account the EUROC is burnt.
The system ensures that EUROC’s value does not experience volatility issues. It is a great option to hedge against inflation. Inflation has caused issues in maintaining the value of several stablecoins, so Circle took proactive steps to ensure every EUROC is well-documented.
What is unique about EUROC than other stablecoins?
Circle aims to improve global economic standards via frictionless exchange of currency value. It took steps to receive BitLicense from the State Department of Financial Services in New York. It means EUROC is a fully regulated cryptocurrency.
CircleCompany had to prove its capabilities to support its assets in a legal and verifiable way to the US government. Without proof, they would not receive the BitLicense.
Pros of EUROC
Cryptocurrency is gaining popularity in the European market because it can be moved across international borders without any worries about the time zone. Euro is 2nd largest fiat currency and 32% of global trades are conducted with euros. It is strange that until now cryptocurrency landscape is focused on the dollar.
Nevertheless, the EUROC stablecoin will offer the European traders a chance to perceive things in used currency. Worldwide businesses can gain access to euro liquidity that can be used for trading, borrowing, lending, and payments.
Stablecoins entered the market originally to avert the bank restrictions of trading with cryptocurrency. Traders obtain stable liquidity with stablecoins in the highly volatile crypto market. Today, banks are slowly adopting cryptocurrency and so the latest use of stablecoins is switched to countries not having banks.
Immigrants not having a bank account in a foreign country they are employed in can easily transfer cryptocurrency to their native countries quickly at low transaction fees. They just need to get a Euro coin (EUROC) wallet to receive, transfer and store their tokens.