For the first time in the history of Cryptocurrency, a Blockchain based currency backed by a central bank but not controlled by it has been released. The EURO Digital currency backed by the Fiat EURO entered the digital space on the 30th of June with an iPhone and Android wallet built by Quantozpa for easy accessibility.
There has never been a stable coin run on a blockchain that was not controlled by a central bank like the one we have now. The EURO Digital currency comes with a difference. EURD is not a stable coin but is the same as real Fiat Euro on Algorand blockchain. This EURD is a 1:1 Euro-backed digital money that could revolutionize the digital currency landscape. The issuer of this innovative digital currency is Quantoz, which is also a pioneer in creating payment infrastructure using distributed ledger technology and has been granted an electronic money license from De Nederlandsche Bank (DNB).
The digital EURO is not a CBDC, but a digital Fiat or e-money on a Blockchain. Thus, when you say there’s digital EURD on Algorand what you mean to say is that it’s equivalent to having your EUROS deposited in any commercial bank. It’s not a stable coin linked to Fiat; it’s real EURO, thus decentralized because no bank controls it.
EURD stands out in that, unlike other stablecoins, it is fully in compliance with regulations as a stable currency. In addition, the stability of EURD is increased as it is pegged against Euro which provides reliability and predictability of its value.
EURD does not risk de-pegging. This is what separates it from other digital currencies because it tapped into the European Banking system directly for its operations. The issuer and bank from the Netherlands have formed a direct partnership which has many positive implications on the crypto ecosystem.
No merchant fees like VISA or Mastercard charge. It also settles quickly meaning Merchants can have funds faster. While Algorand settles EURD 3 seconds, card payments can take later than almost a month to reach merchants’ accounts. Hence blockchain technology enables transactions to be made more efficiently without intermediaries and reducing costs for the players involved.
The enhanced Security and Transparency is another advantage of the EURD. The Quantoz Euro exploits the blockchain technology’s internal security and transparency. It is a distributed ledger that registers each transaction and movement of EURD ensuring a tamper-proof and auditable history. Furthermore, users can confirm whether transactions were legitimate through the blockchain, which enhances trust on this system. Moreover, it reduces fraud, hacking or manipulation possibilities associated with blockchain-based infrastructure making it highly secure for digital currency users.
The background provided by underlying blockchain technology acts as an enabling infrastructure to rapid expansion and adoption in decentralized finance (DeFi) platforms ecosystem, merchant integrations , machine-to-machine payments and other digital financial services. Businesses can uncover new opportunities with EURD; Individuals may access innovative financial products while the entire digital economy thrives.
So this is quite good news for crypto-users in Europe and the whole crypto space. It actually looks like we’re starting to see real adoption taking place here. I think that this will cause not only Algo to skyrocket but also BTC plus ETH too. And it is very positive for all cryptos going forward, probably the biggest news in all of crypto because it means that it has really started getting adopted heavily.