The first legal tender token in euros
155 – On November 15, 2023, Quantoz Payments announced the launch of EURD, the first legal tender in euros, regulated and created on the Algorand network. This milestone represents an important step forward for the crypto industry, as it opens the door to mass adoption of cryptocurrencies by institutional and retail investors.
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EURD is a digital token backed by real euros. Each token is backed by a pool of equivalent euros, which is held in custody by an independent third party. This ensures that investors are assured that their tokens have real value and can be exchanged for euros at any time through the Peer-To-Peer markets in Europe.
Quantoz Payments was authorized by the Dutch Central Bank, its main function is to facilitate electronic payments within the European community, thus acting as a digital payment method authorized by the regulators.
The token is designed to comply with all applicable regulations, making it an attractive option for institutional investors. The currency complies with the requirements of the UK Financial Services Act and is intended to become the currency that is part of the transition process towards digital means of payments.
Is URD equivalent to a CBDC?
For some time now, the European community has been thinking about issuing a CBDC, but with the news of EURD, many are wondering if the project will not obscure the aforementioned; the answer is no, since Quantoz Payments is the main issuer, the CBDC project does not lose its validity, but rather allows it to observe the development of this issue in order to complement it in the future.
In addition, Quantoz Payments is responsible for ensuring data security and avoiding risks related to hacking and/or money laundering, so the initial feedback will determine the future of CBDCs in Europe. The security protocol implemented by the company is based on public key encryption, so each user will have access to his wallet only if he has the key.
Although this type of encryption is a risk in the face of the threat of quantum technology, it has been one of the main methods that have been implemented since the development of blockchain technology. Although the company is already working on future improvements, today this type of encryption is one of the most feasible and widely understood worldwide.
It is important to note that the launch of $EURD could generate some competition for other stable currencies, such as Tether (USDT) and USD Coin (USDC). These currencies are currently the most popular in the market and could be affected by the arrival of a new stable currency backed by euros.
The future of stable coins
The launch of EURD is a clear sign that stable coins are gaining more and more importance in the crypto market. Stable currencies offer a number of advantages, such as price stability, security and ease of use.
The market for stable currencies is expected to continue to grow in the coming years. The launch of EURD could help fuel this growth, as it offers an attractive option for investors seeking a stable coin backed by fiat money, and the fact that it is licensed by regulators increases transparency and confidence in the project.
Algorand has earned the trust of being the network to be implemented, thus demonstrating that it has security nodes that allow it to highlight the potential that EURD can have in society.
As mentioned above, it is very likely that EURD has been authorized to act as a “tester” of how it is received by the European community and how well it is adapted. Based on this, CBDC will be issued to correct the flaws that are observed and thus enhance the use of digital means of payments through blockchain technology.
Writter: Franco Rubeis