“The lack of real-world applications for blockchain has led to low demand for non-USD stablecoins,” e-Money wrote.
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According to a post on January 9, e-Money — a stablecoin project in the Cosmos ecosystem — said it would discontinue the issuance of its euro stablecoin EURR effective March 6, 2023. In explaining the decision, e-Money wrote:
“The lack of real-world applications for blockchain has led to low demand for non-USD stablecoins. The upcoming European MiCA legislation is expected to hinder the scalability of Euro-backed stablecoins and limit business opportunities in the sector. European MiCA legislation in its current form favors commercial banks as future issuers of Euro stablecoins, hurting innovation in the European Union.”
Until the deadline, users can redeem their EEUR by swapping their stablecoins for digital assets such as OSMO, ATOM, or USD Coin (USDC) on Cosmos decentralized exchange Osmosis (OSMO). For amounts over 100,000 EEUR, e-Money recommends direct redemption for euros with e-Money A/S. “This requires KYC/AML and you should expect around 5 business days for processing. Please contact email@example.com to redeem using this option,” the firm wrote.
Important Announcement: EEUR Stablecoin Unwind
e-Money A/S has decided to cease issuance of its EUR backed stablecoin
➡️All stablecoins remain fully backed and can be redeemed. Read our Medium post & select one of the listed redeem options ⤵️https://t.co/1yneUFrD7U
— e-Money (@emoney_com) January 9, 2023
e-Money was founded in 2017 on the Cosmos blockchain and launched its mainnet in early 2020. The company previously worked Financial Services Authority and Ernst & Young to “develop a transparent and compliant model for stablecoins that could accommodate negative interest rates in the Euro-zone.” e-Money initially began issuing EEUR stablecoins in 2020 using Ethereum (ETH) bridging technology and later incorporating Cosmos and Axelar.
“The crypto industry faced many challenges in 2022, with both centralized and decentralized entities experiencing difficulties. While e-Money was not directly affected, the stablecoin business relies heavily on integration with traditional finance, and financial institutions’ interest in cryptocurrency has waned following the events of 2022.”