Circle Announces Euro Coin (EUROC) | Bitcointalksearch.org

Xal0lex

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Quote from: tvplus006 on June 20, 2022, 05:51:04 AM

Quote from: Xal0lex on June 17, 2022, 02:07:04 PM

...I wonder if EUROC will be fully backed by real EURO, or as usual, some in fiat and the rest in securities? Then it will be another stablecoin, which sooner or later will lose its connection to the EURO.

Given the fact that USDC is fully backed by the dollar, it can be assumed that EUROC will also be fully backed by EUR, since they have the same issuer. The time-tested mechanism of USDC functioning does not require additional innovations, which will be transferred to the new EUROC stablecoin.

I would argue about the claim that the USDC is fully backed by the dollar. Since the last audit, this claim has been questioned and even Circle itself has amended its website to say:

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Each USDC is backed by one dollar or asset with equivalent fair value, which is held in accounts with US regulated financial institutions.

In essence, they are writing that each of their tokens is backed not only by a dollar, but also by an asset of equivalent value. By this you can mean various securities, bonds, etc. Actually, I read somewhere that USDC has no more than 60% real fiat collateral, the rest is all in securities.

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Quote from: DeathAngel on June 19, 2022, 02:02:38 PM

I’m not too interested in these stablecoins & I don’t trust them. We saw what happened when UST lost its peg, the whole crypto market came crashing down so Circle announcing a Euro Coin doesn’t fill me with any great hope or bullishness.

I think there is a reason behind why UST lost its peg. And I think UST has different mechanism than those of USTD and USDC. Looking at this article[1] we can clearly see the difference between USDT and UST

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TerraUSD (UST) is a decentralized algorithmic stablecoin that underpins the Terra (LUNA) blockchain.UST is pegged to the US dollar in an attempt to maintain its value at USD 1. However, unlike centralized stablecoins, UST isn’t backed by dollar reserves in a bank account. Instead, to mint a UST token, users pay USD 1 worth of LUNA, which acts as TerraUSD’s reserve asset. while Tether Limited,USDT was designed to be pegged 1:1 to the US dollar. This means while the price of other cryptoassets fluctuates, USDT’s price usually stands around USD 1.

See the difference between the UST and USDT. USDT and USDC has almost the same system of pegging to dollar 1:1. Though in terms of credibility, I believe USDC is much more stable than USDT because Centre complies with audits and governmental regulation, and has more transparent, fully-backed reserves.

[1] https://cryptonews.com/exclusives/usdt-vs-usdc-vs-ust-how-do-they-compare.htm

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Quote from: Xal0lex on June 17, 2022, 02:07:04 PM

...I wonder if EUROC will be fully backed by real EURO, or as usual, some in fiat and the rest in securities? Then it will be another stablecoin, which sooner or later will lose its connection to the EURO.

Given the fact that USDC is fully backed by the dollar, it can be assumed that EUROC will also be fully backed by EUR, since they have the same issuer. The time-tested mechanism of USDC functioning does not require additional innovations, which will be transferred to the new EUROC stablecoin.

bayudndy

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Although I have also heard about this news, I don't know if the feasibility and variety of stablecoin products from Circle is really necessary. In the future, there will be many other things like yuan, rub, yen, etc. that will also be made public in some way. Overall, I'm not much of a fiat person to understand all of this, but in terms of usage, I would still choose USD over EUR for crypto asset conversion.

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Quote from: Bitcoin_Arena on June 17, 2022, 06:05:44 PM

Quote from: Xal0lex on June 17, 2022, 02:07:04 PM

Circle has taken on the stablecoin market in earnest, and they're probably on their way to the top. I think that in the near future USDC may lead the leadership in the stablecoin market, given the way the whales are leaving Tether.

True, If you look at their current marketcap, they are just $15M shy of USDT. There has been a mass exodus from USDT as people don't trust, and I am one of those folks. It's just a matter of time before they overtake USDT as the top stablecoin

I have always asked myself why we don't have any popular or well-known "crypto coins" that are pegged to the Euro, Pound, Yen etc

Perhaps you meant $15B? Because if it's $15M it can be called equal capitalisation.

To be honest, I don't understand why the market needs EUROC? I think such coins have already been created but turned out to be unnecessary. There are already too many stablecoins on the market. I don't understand why anyone sees any prospects in EURO?

Bitcoins101

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Quote from: DeathAngel on June 19, 2022, 02:02:38 PM

I’m not too interested in these stablecoins & I don’t trust them. We saw what happened when UST lost its peg, the whole crypto market came crashing down so Circle announcing a Euro Coin doesn’t fill me with any great hope or bullishness.

UST is an algorithmically stable coin, as opposed to USDT or USDC, which are backed by government bonds and fiat currency. Eurocoin release will not be a major news event, so don't expect a large market growth. Circle is more reliable than Tether and other algorithmic stablecoins, and this Eurocoin release gives investors more choices when holding stablecoins.

Lagduf

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Eu already stated that if there would be a maximum cap for the digital euro and it was around 1,5 trillion. Will this mean if this EUROC can be included in the digital euro as well? im feeling curious about this. Circle was the best stable token issuer so far and this company can be trusted.
I wonder how many people will be actively using this euro stable token that issued by circle. So far USDC was also performing very well.

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I’m not too interested in these stablecoins & I don’t trust them. We saw what happened when UST lost its peg, the whole crypto market came crashing down so Circle announcing a Euro Coin doesn’t fill me with any great hope or bullishness.

popeye95

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If only US and EU governments see the real killing in making a stable coin in their fiat USD and EUR. No more self-claim, make-up that their stable coins are back by fiat when governments can offer that kind of service directly without any middle man.

Xal0lex

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Quote from: Bitcoin_Arena on June 17, 2022, 06:05:44 PM

I have always asked myself why we don't have any popular or well-known "crypto coins" that are pegged to the Euro, Pound, Yen etc

Probably because the dollar in cryptocurrency is the most common, and the local currency is not used as much in the crypto industry, but I think that with the development of the crypto industry and crypto adoption this could be changed. I wonder how the Euro stablecoin and the digital euro (CBDC) will coexist. Hopefully, this will not serve as a reason to restrict the use of euro stablecoin by the euro union and the central bank.

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Quote from: Xal0lex on June 17, 2022, 02:07:04 PM

Circle has taken on the stablecoin market in earnest, and they're probably on their way to the top. I think that in the near future USDC may lead the leadership in the stablecoin market, given the way the whales are leaving Tether. I wonder if EUROC will be fully backed by real EURO, or as usual, some in fiat and the rest in securities? Then it will be another stablecoin, which sooner or later will lose its connection to the EURO.

Circle looks more trustworthy than Tether so I can also see that happening. I think it's only a matter of popularity and first move advantage that USDT is still the top stable coin for now. Circle has also proven that USDC is fully backed by a Dollar when they hired a reputable Auditing Firm called Grant Thornton. They issue a monthly report where the public can verify if the 1:1 claim is true. It should be the same case with EUROC.

Bitcoin_Arena

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Quote from: Xal0lex on June 17, 2022, 02:07:04 PM

Circle has taken on the stablecoin market in earnest, and they're probably on their way to the top. I think that in the near future USDC may lead the leadership in the stablecoin market, given the way the whales are leaving Tether.

True, If you look at their current marketcap, they are just $15M shy of USDT. There has been a mass exodus from USDT as people don't trust, and I am one of those folks. It's just a matter of time before they overtake USDT as the top stablecoin

I have always asked myself why we don't have any popular or well-known "crypto coins" that are pegged to the Euro, Pound, Yen etc

hugeblack

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I still believe that stablecoins are Trojans, and although they have made trading cryptocurrencies easier, the belief that they have value outside of exchanges or as an alternative to fiat money is a perception that must change quickly.

Of course, it will be 100% supported on the first day, and soon this percentage will drop to less than 3% over time.

In general, let's see if it will be tightly tied (always maintaining the value of one dollar) or will it fluctuate.

Xal0lex

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Circle has taken on the stablecoin market in earnest, and they're probably on their way to the top. I think that in the near future USDC may lead the leadership in the stablecoin market, given the way the whales are leaving Tether. I wonder if EUROC will be fully backed by real EURO, or as usual, some in fiat and the rest in securities? Then it will be another stablecoin, which sooner or later will lose its connection to the EURO.

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Circle Announces a Fully-reserved, Euro-backed Stablecoin, Euro Coin (EUROC)
https://www.prnewswire.com/news-releases/circle-announces-a-fully-reserved-euro-backed-stablecoin-euro-coin-euroc-301569124.html
Jun 16, 2022, 09:00 ET
"BOSTON, June 16, 2022 /PRNewswire/ -- Circle Internet Financial, a global internet finance firm and issuer of USD Coin (USDC), today announced that it is preparing to issue a fully-reserved, euro-pegged stablecoin from the United States called Euro Coin (EUROC). Available June 30, Euro Coin is a regulated, euro-backed stablecoin issued under the same full-reserve model and built on the same pillars of trust, transparency, and security that have made USDC one of the world's most trusted digital currencies."

Topic: Circle Announces Euro Coin (EUROC) (Read 97 times)