EUROC, the first major euro stablecoin, lists on Bitpanda Pro

What is EUROC?

EUROC is a stablecoin (more on that below) that is 100% backed by full reserves of the euro, which is the second-largest reserve currency and the second-most traded currency in the world after the U.S. dollar. Every EUROC token is pegged to the euro in a 1-to-1 ratio, making 1 EUROC token redeemable for 1 euro. 

Issued by Circle and launched as an ERC-20 token on the Ethereum blockchain, EUROC can be used for transactions, payments, borrowing, lending, and trading. This is especially great news for Bitpanda Pro users, who can now hold their assets in a euro-based stablecoin while enjoying lower transaction costs. 

EUROC/EUR is now live on Bitpanda Pro - deposit now and trade this exciting new pair! 

What is a stablecoin?

Stablecoins are digital assets whose value is pegged to the value of another asset such as a fiat currency (like the US dollar or the euro), another cryptocurrency, or even a commodity (like gold or oil). As their name suggests, fiat-collateralised stablecoins are designed to offer minimal price volatility by maintaining a constant exchange rate to the asset they are pegged to.

Though trust in stablecoins has been wavering lately, it’s important to remember that not every stablecoin is created equal.  The recent crash of the Terra LUNA project, for instance, made huge waves across the cryptoverse and had some investors scrambling. But the project’s stablecoin, Terra LUNA, was not backed by a fiat currency or by any other asset, rather basing its value on an algorithmic stablecoin without fiat reserves.

EUROC & DeFi 

As with USDC, EUROC can be used for decentralised swaps, borrowing and loans at a more stable exchange rate. For example, if an investor places BTC as their collateral to earn yield or on a loan, they may lose money due to the volatility of the underlying asset, BTC. With fiat-backed stablecoins, the asset remains pegged to that fiat currency and therefore should hold its value at or around a 1:1 ratio. In addition, investors can use their EUROC as collateral on a leveraged product, knowing that the asset remains pegged to fiat currency. 

Banking for the unbanked

Like other cryptocurrencies, stablecoins can provide a banking alternative for people who would otherwise be unable to open a bank account. Anyone that has access to a mobile phone can create a digital wallet, which opens the doors to financial freedom as users can avoid many of the fees that they’d experience with traditional banks. Stablecoins such as EUROC provide the unbanked a secure replacement that is backed by fiat currency, offers an alternative to hyperinflation through potential price stability, access to an alternative financial network, and ultimately a more dependable way to preserve their value. 

Where can I learn more? 

Want to learn more about stablecoins, DeFi, and investing? Check out the Bitpanda Academy and explore more on the Bitpanda Blog. For the latest news and developments in the world of crypto and finance, follow our social media channels and subscribe to the official Bitpanda YouTube channel for our weekly recaps and video content. 

Disclaimer This article does not constitute investment advice, nor is it an offer or invitation to purchase any digital assets. This article is for general purposes of information only and no representation or warranty, either expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this article or opinions contained herein. Investing carries risks. Make sure to conduct your own research before making any investment.