EUROe Unveiled: EU’s First Regulated and Fully Backed Stablecoin

Finnish financial technology company, Membrane Finance, has launched the first fully-reserved euro-backed stablecoin regulated in the European Union. The digital currency, called “EUROe,” will be supported by “at least one fiat euro” held in a European financial institution.

The company has already been granted an Electronic Money Institution license from the FIN-FSA (the Finnish Financial Supervisory Authority). Membrane Finance believes that having obtained the license at this point will “future-proof its competitiveness in the market ahead of the upcoming European MiCA legislation“.

According to the company, the launch of EUROe will provide near-instant payments at close to zero cost. This is in contrast to the slow speeds and high costs of traditional finance.

In a statement, Juha Viitala, CEO and co-founder of Membrane Finance, said that the launch of a regulated Euro-based stablecoin was a huge milestone for the European crypto market and community. He added that the goal is to bring decentralized finance to the masses by making it easy for Europeans to use a currency they trust and know.

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EUROe will initially be available on the Ethereum blockchain, with plans to support additional blockchain networks in the future. The rise of stablecoins, which are crypto tokens backed by fiat currency, has been a major trend in the crypto world. The first U.S. dollar stablecoin, Tether, was released in 2014 and is now the third-largest cryptocurrency by market capitalization.

Recently, stablecoin issuer Circle and Uniswap published a report suggesting that blockchain-based foreign exchange can reduce remittance costs by up to 80%. The report highlights the potential for stablecoins to revolutionize the financial industry, making digital currencies more accessible and easier to use for a wider range of people.