Robert Steinadler, 7 months ago
Solana is one of the fastest and most scalable blockchains and has a thriving DeFi ecosystem. Despite several hiccups and complete outages, this ecosystem is growing. It was last weekend during the Solana Breakpoint conference when Circle announced its new plans for Solana.
What is EUROC and why it could come important in the near future?
The US-Dollar is the world's reserve currency and this is the very reason that Dollar-backed stablecoins are the most dominant product on the market. One of the most driving growth factors are DeFi applications.
But that is not the only use-case for stablecoins since they also grow more important in the payments sector and as an investment. Take the Turkish Lira for instance, it suffers from about 80 percent inflation and stablecoins are a great way for Turkish investors to diversify or protect their portfolios from negative effects. Investing in stablecoins comes at low cost, high availability and the option to transact with them at all times with nearly instant confirmation of transactions.
Euro-backed stablecoins are promising even more growth. They might not be important to the DeFi sector yet, but they offer another way of diversifying portfolios and could possibly be implemented into infrastructure of European payment providers.
EUROC is one of the few Euro-backed stablecoins available on the market. It started on the Ethereum blockchain because the biggest smart contract platform in the world is the place to start with. Circle already announced that EUROC will be expanded onto other blockchains, but didn’t make any statements which blockchain will be first.
Now we know more, and it is Solana which won the race. EUROC will be implemented as a SPL token in early 2023. It will also be part of Circle's own Cross-Chain Transfer Protocol. The goal is to provide a framework that teleports a stablecoin from one blockchain to another. This function should be available at the end of 2022 and will start on Ethereum and Avalanche.
That being said, we can expect Circle to expand EUROC to other blockchains as well. Hot candidates are the Binance Smart Chain, Avalanche, Tezos, Tron among several other blockchains. By transforming its own stablecoins into assets that are chain-agnostic Circle could possibly attack the position of its biggest competitor and market leader Tether.
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Stablecoins are highly attractive. Payments can be settled within minutes and investors have access to many different currencies that they can add to their portfolios. These are only two use cases for stablecoins and judging from their overall market cap, they will not only dominate the crypto space. They have a real chance to drive mass adoption since they tokenize currencies that are demanded by billions of people worldwide. It looks like Societe Generale recognized this potential.
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