Spain Launches Euro-Pegged Stablecoin EURM Trials
Most people use stablecoins at some point. Stablecoins play an important role in crypto. But there are trust issues and controversies. You cannot say there is no risk in holding stablecoins. The thing is, you take that risk when you decide to hold stablecoins.
The Central Bank of Spain approved Payments FinTech Monei to launch the euro-pegged stablecoin EURM. They start the trial program which will last six to twelve months. They will analyze everything, get feedback, fix bugs, and make necessary adjustments before expanding their operation.
In this trial, only a small group of people can participate and test it. In order to participate in this test phase, users have to verify their identity by video identification and enter their phone numbers. Then they have to use the instant payment services provider Bizum to deposit EURO to receive EURM tokens in their wallets.
EURM tokens will create automatically and maintain a 1:1 ratio with physical EURO. BBVA and Caixabank, leading financial institutions in Spain will hold the fund in two accounts. Users can send EURM to any user or company that is accepting EURM. They can exchange and get EURO at any time. EURM will always be equal to EURO.
Dollar-based stablecoins are more popular in the crypto space. When EURO-based stablecoins become widely available and draw attention, people may start using them. But I think if there are too many requirements in order to use EURO-based stablecoins, people may avoid that.
You may use stablecoin and think that is the best stablecoin to hold in crypto. But you may not notice what's going on behind the scenes. When the news and data reveals, you are shocked to see how much risk you are taking holding the stablecoins.
The government will keep making its move to have more control and retain its monopoly in the existing financial system. Crypto eliminates the middlemen and takes the power away from the central authority and gives it back to the people.
If you look back and see the collapse of FTX and Terra LUNA, you see the centralization that gets the existing financial system in trouble, the same elements get the crypto industry in trouble and give it a bad name. Some people point fingers at centralized crypto exchanges and their shady activities and blame the whole crypto ecosystem.
Now we see Euro-Pegged Stablecoin EURM Trials. We may see more initiatives like this. Regulators bring regulations to solve problems and go hard on crypto in the name of protecting investors. The central authority cannot stop the revolution that starts with Bitcoin. They may slow it down, but crypto will find its own way to move forward.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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Reference: 1.
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It's all about control and by controlling the stablecoin, they can monitor everything or even manipulate things as they wish. I can see more places following suit and we have to just work around it.
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Looks like they come up with nice slogans and attractive ways. You're right. It is about more control.
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