Starting on March 6, the Cosmos ecosystem stablecoin project e-Money will stop issuing its EURR euro stablecoin.
According to a Medium post from January 9, the Cosmos ecosystem stablecoin project e-Money will stop issuing its EURR euro stablecoin on March 6. e-Money wrote in its explanation of the choice:
“The lack of real-world applications for blockchain has led to low demand for non-USD stablecoins, and the upcoming European MiCA legislation is expected to hinder the scalability of Euro-backed stablecoins and limit business opportunities in the sector. European MiCA legislation in its current form favours commercial banks as future issuers of Euro stablecoins, hurting innovation in the European Union.”
Customers with funds below 100000 EEUR can unwind their positions by swapping their tokens directly in the stablecoin market on Osmosis, the largest decentralized exchange on Cosmos. Users can exchange their stablecoins for digital assets like OSMO, ATOM (ATOM $11.20), or USD Coin (USDC) on the Cosmos decentralized exchange Osmosis to redeem your EEUR until the deadline.
E-Money advises direct redemption for euros with e-Money A/S for sums over 100,000 EEUR. “This requires KYC/AML, and you should expect around 5 business days for processing time. To redeem utilizing this choice, get in touch with [email protected], the company said.
On the Cosmos blockchain, E-Money was created in 2017 and debuted its mainnet in early 2020. To “develop a transparent and compliant model for stablecoins that could accommodate negative interest rates in the Euro-zone.” the company previously collaborated with the Financial Services Authority and Ernst & Young.
Using Ethereum bridging technology, E-Money first started issuing EEUR stablecoins in 2020. Later, the crypto currency and Axelar were added.
“The crypto industry faced many challenges in 2022, with both centralized and decentralized entities experiencing difficulties. While e-Money was not directly affected, the stablecoin business relies heavily on integration with traditional finance, and financial institutions’ interest in cryptocurrency has waned following the events of 2022.”
