e-Cash, an digital fee system constructed on the Cosmos community, has stopped issuing the euro-backed stablecoin EEUR, citing a chronic bear market as the explanation for the choice.
No extra euro-backed stablecoins
The corporate introduced the information in a Medium weblog publish, stating that growth took impact on January 9, 2023. In the meantime, e-Cash mentioned customers have till March 6, 2023 to redeem the EEUR stablecoin.
Citing the explanation for discontinuing the issuance of the EEUR stablecoin, e-Cash mentioned the bear market weakened e-Cash’s skill to proceed the EEUR stablecoin undertaking. Market decline has made it troublesome to combine e-money with conventional finance, the undertaking mentioned.
“Given the present market circumstances, that effort has sadly reached the purpose of prudent and accountable curtailment...Moreover, the dearth of real-world purposes of blockchain has lowered demand for non-USD stablecoins, and the upcoming European MiCA laws will hamper the scalability of euro-backed stablecoins. , it’s anticipated that enterprise alternatives on this space can be restricted. His MiCA laws in Europe, in its present type, favors business banks as issuers of future Euro-His stablecoins and stifles innovation within the European Union. ”
Digital cash.
Moreover, e-Cash mentioned that the upcoming MiCA laws within the European Union might be problematic for the EEUR stablecoin.
Relating to redemption choices, the weblog publish states that clients redeeming lower than 100,000 EEUR can redeem their tokens for USDC, Cosmos native token ATOM, or OSMO on Osmosis, the most important decentralized change (DEX) within the Cosmos ecosystem. says.
Additionally, customers over 100,000 EEUR can change their tokens immediately into Euros. Such clients are required to undergo KYC and the redemption course of takes 5 enterprise days. says that there’s
Though the EEUR stablecoin has ended, the e-Cash blockchain continues to be operational and can be upgraded in Q1 2023 to combine the most recent Cosmos SDK options.
