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Stablecoin issuer Circle announced Tuesday that it's euro-backed digital currency is now available on the Stellar Network.
EURC, much like its predecessor USDC, is a fiat-backed stablecoin, offering a consistent 1:1 redeemability with the euro through a full-reserve model. Until this launch, EURC was available on Ethereum and Avalanche, making Stellar the third addition to its portfolio.
For those unfamiliar with the terrain, stablecoins offer the advantages of cryptocurrencies without their notorious volatility, essentially tying their value to a particular fiat currency like the dollar or euro. The Stellar network, lauded for its speed and affordability, is a decentralized platform designed for modern financial products and services.
This latest move significantly propels Stellar's capabilities. With the addition of EURC, it offers a digital avatar of the world's second most traded currency. This means businesses and even individual developers can now harness a globally recognized euro digital currency, reaping the benefits of the Stellar network's renowned attributes - affordability, speed, and reliability. The potential implications are vast, particularly for foreign exchange and remittance services. In an increasingly globalized world, the need for rapid, low-cost transactions, especially in regions underserved by traditional banking infrastructures, cannot be understated.
"The launch of EURC on Stellar has the potential to radically enhance European remittance corridors, cross-border payments, treasury management, and aid disbursement,” Rachel Mayer, Circle's VP of product management, said in the announcement.
“This integration builds on our long-standing relationship with Circle, and furthers our mission of creating equitable access to the global financial system,” said Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation.
Taking the lead in harnessing this breakthrough is Ripio, a top-tier crypto company from Latin America, now broadening its horizons into Spain. Ripio's integration of EURC on Stellar in their wallet app facilitates Euro deposits and withdrawals, fortifying its commitment to fostering crypto adoption.
While the immediate use-case of EURC on Stellar is evident, its longer-term implications are even more profound. Stellar products catering to euro-based users will witness enhanced scope and flexibility. In particular, systems like Stellar Aid Assist, renowned for its transparent and efficient relief fund deliveries, will likely integrate EURC, ensuring timely assistance during humanitarian emergencies.
Stellar and Circle said the firms are currently working alongside the UNHCR to disburse aid to displaced persons affected by the war in Ukraine.
For a deeper understanding of EURC's integration into the Stellar network, curious minds can explore further here.