Bitstamp, a bitcoin exchange based in Luxembourg has announced the launch of Tether’s first Euro-based stablecoin, EURt. Tether-issued stablecoins already hold a dominant position in the European crypto sphere, and with rising demand for stablecoins, EURt could be the answer to exceptional profit margins for Bitstamp. The press released has dated the launch to 22nd July, Thursday and it states that the coin will be available for trading on both, on the website, i.e., bitstamp.net, and the Bitstamp app.
Compatible with domestic currency
Bitstamp mentioned that EURt is custom-made for users in the European territory. The exchange highlighted that the low-risk, reliable stablecoins are mostly traded against the US dollar on a 1:1 basis. Nevertheless, EURt will be compatible with Euro users, allowing them to trade in their domestic currency.
“Accepted the world over, the US dollar is the global reserve currency and most stablecoins are pegged to it on a 1:1 basis. However, many of our users do have the euro as their domestic currency. We know how important it is to be able to trade in your domestic currency, so this news should come as a delight to all our EU-based customers.”, read the press release.
Bitstamp emphasized the domestic efficiency of EURt. This domestically compatible stablecoin will save EU users time and money. However, less time and money for transactions, will not be affecting the user’s overall purchasing power.
“By using EURt, you’ll have a good chance of removing FX volatility since no USDt intermediary is required. You can also avoid any potential loss of purchasing power if the euro loses strength… There’s a huge gap in the market for products which accept a euro-pegged stablecoin, making widespread acceptance even closer to reality.”
The demand for stablecoins has globally seen a hike. For instance, the US government recently said that stablecoins are a comparatively better alternative than crypto while announcing the upcoming CBDCs roadmap. However, stablecoins still lack the regulatory aspect of the financial market.
“My point with stablecoins is they’re like money funds, they’re like bank deposits, and they’re growing incredibly fast but without appropriate regulation…And if we’re going to have something that looks just like a money-market fund or bank deposit … we really ought to have appropriate regulation and today we don’t.”, said Jerome Powell, the Federal Reserve Chairman.
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