• The euro is the second most widely held reserve currency in the world, yet it is underrepresented in the stablecoin space.
• Leading euro-backed stablecoins fall behind U.S. dollar-backed ones when it comes to market share and adoption.
• Coinbase recently announced its listing of Euro Coin (EUROC) on the Ethereum network, a move that signals growing demand for euro-backed stablecoins.
Euro Underrepresented in Stablecoin Space
The world’s second most widely held reserve currency, the euro, seems to be underrepresented in the stablecoin space. According to data from the International Monetary Fund, the euro is the official currency of 20 of 27 member states of the European Union (EU), with over 300 million people using it as their base currency. In the cryptocurrency space, euro is widely adopted by cryptocurrency trading platforms serving users in EU countries however when it comes to stablecoins, there are not many popular options available and they are not widely used.
Leading Euro-Backed Stablecoins Fall Behind
The world’s largest stablecoin issuers Tether and Circle have issued euro-backed tokens but they pale compared to their US Dollar backed counterparts in terms of market share and adoption. For example, Euro Tether (EURT) has only 200 million tokens circulating compared to 70 billion USDT circulating tokens while Circle’s Euro Coin (EUROC) has only 32 million circulating tokens whereas USDC has 42 billion coins circulating in comparison.
Growing Demand for Euro-Backed Stablecoins
While EUROC is less than one year old since its launch last June 2022, Coinbase recently announced its listing of this token on Ethereum network which serves as an indication of growing demand for euro-backed stablecoins among investors looking for price stability against fluctuations from volatile cryptocurrencies such as Bitcoin or Etherum .
Regulation and Risk Factors Driving Demand
As governments around the world work towards regulating cryptocurrencies more closely, investors are turning to alternatives that offer greater levels of security and control over their funds – making them more attractive than unregulated options like Bitcoin or Etherum . This shift is driving demand for euro-backed stablecoins which provide investors with peace of mind due to their relative safety compared to other digital assets as well as access to liquidity benefits associated with being backed by a major global reserve currency like euros .
Conclusion
Euro-backed stablecoins offer investors a reliable option when seeking price stability against fluctuations from volatile cryptocurrencies such as Bitcoin or Etherum . As regulations become tighter across international markets and risk factors increase, demand for these euro backed digital assets will continue grow due to their relative safety compared to other digital assets as well as access liquidity benefits associated with being backed by a major global reserve currency like euros .