Based on a post on January 9, e-Cash — a stablecoin challenge within the Cosmos ecosystem — mentioned it might discontinue the issuance of its euro stablecoin EURR efficient March 6, 2023. In explaining the choice, e-Cash wrote:
“The shortage of real-world purposes for blockchain has led to low demand for non-USD stablecoins. The upcoming European MiCA laws is predicted to hinder the scalability of Euro-backed stablecoins and restrict enterprise alternatives within the sector. European MiCA laws in its present type favors business banks as future issuers of Euro stablecoins, hurting innovation within the European Union.”
Till the deadline, customers can redeem their EEUR by swapping their stablecoins for digital property similar to OSMO, ATOM, or USD Coin (USDC) on Cosmos decentralized trade Osmosis (OSMO). For quantities over 100,000 EEUR, e-Cash recommends direct redemption for euros with e-Cash A/S. “This requires KYC/AML and it’s best to count on round 5 enterprise days for processing. Please contact gross sales@e-money.com to redeem utilizing this feature,” the agency wrote.
Essential Announcement: EEUR Stablecoin Unwind
e-Cash A/S has determined to stop issuance of its EUR backed stablecoin
➡️All stablecoins stay absolutely backed and could be redeemed. Learn our Medium put up & choose one of many listed redeem choices ⤵️https://t.co/1yneUFrD7U
— e-Cash (@emoney_com) January 9, 2023
e-Cash was based in 2017 on the Cosmos blockchain and launched its mainnet in early 2020. The corporate beforehand labored Monetary Companies Authority and Ernst & Younger to “develop a clear and compliant mannequin for stablecoins that might accommodate destructive rates of interest within the Euro-zone.” e-Cash initially started issuing EEUR stablecoins in 2020 utilizing Ethereum (ETH) bridging know-how and later incorporating Cosmos and Axelar.
“The crypto business confronted many challenges in 2022, with each centralized and decentralized entities experiencing difficulties. Whereas e-Cash was indirectly affected, the stablecoin enterprise depends closely on integration with conventional finance, and monetary establishments’ curiosity in cryptocurrency has waned following the occasions of 2022.”
