“Stablecoin initiatives would benefit the competitive advantage of Big Tech business models as they would control the critical infrastructure for commerce, economic activity and the large pools of customer data.” to Maria Teresa Chimienti, market infrastructure expert at the European Central Bank.
But what about the unbanked? What about the high transactional fees the working population has to pay to send money overseas to their families? Why is the Union being disregarded?
Financial technological advancements have increased the pace of development tremendously within the past decade, which has led to innovational minds creating new opportunities for communication and security within the global community.
As all cheery this may sound, let’s take a step back. The comprehensive yet complex current financial system has been built to cope with the simple task to keep peoples money safe and provide them with their financial debit/credit records within the system. In turn, the hard focus on simple tasks has led to an unprogressive movement and reluctance towards new financial capabilities in relation to offering their customers the ability to invest and secure their assets, whilst being ensured the elimination of fraud.
Previously secure, the traditional financial system presents a dominant flaw, that of, being built by existing institutions showcasing no means of perfection or security. The dependance on a large number of private and public entities that have their organizations and proprietary IT systems created upon a hierarchical structure creates dependance rather than support and financial equality.
‘Many of the critical aspects of the financial system are centralized, portraying an opaque view of what the customers are supposed to see’ – Simone Mazzuca (Founder and Director or EURST)
Within the last decade, cryptocurrencies were introduced, a decentralized global economy enabled by digital ledger technology. The creation of a new digital world led swiftly to the creation of Stablecoins, a cryptocurrency that is asset-backed and therefore minimizes the volatility of its price. Digital ledger technology enables an individual or business to conduct financial operations without having to be involved within political restrictions. Nevertheless, once operating within this system, operations must be constructed within a legal framework that also ensures every user’s safety. This is why we introduce Simone Mazzuca’s latest creation – EURST.
Adhering to regulations and governmental legal frameworks, EURST is a stablecoin that is asset-backed by the federal reserve even before new regulations were in a discussion. EURSTablecoin is a USD asset-backed, live audited, and represents 1€ worth of USD. The highlight, it is secured by the accounts of the federal reserve and Wallex Trust itself. Issued as a token on the Ethereum network according to the well-established ERC20 standards, the advanced capabilities of blockchain technology enables users to conduct faster and more secure transactions. This is enabled through the use of smart contracts, which digitize deposited funds that are held in a segregated account by the issuer. Thus, empowering users to transact their money without the high costs and lengthy delays of the current financial system.
And, following EURST, a couple more stablecoins have surfaced propelling the European Central Bank to give unprecedented attention to the digital currency industry. This new presented interest within the global community, especially the European Union might be due to the EURO being under consistent criticism regarding its strength and endurance. Furthermore, facilitated with the BREXIT debacle, confidence within the European economy has become dissonant.
‘There is one dominant flaw; the EURO does not have a united and strong asset-backed economy’. – Simone Mazzuca
The fault Mr Mazzuca mentions has been well argued since the creation of the Euro. It emerges from economic debates that argue the currencies failure stems from its creation, where it was intended to mimic the firm stance and ability of the US dollar, envisioning a United European States.
This begs the question, why the European Union is not embracing digital advancements within the financial sector, especially within such unprecedented times which has led to families and homes being torn apart.
Stablecoin such as EURST, provides the opportunity to:
- Protect ones wealth, without losing value in relation to the EURO, that without the need of opening a bank account in Europe
- Deposit funds to cryptocurrency exchanges for trading, thus using EURST instead of Fiat
- Using EURST, overseas workers may use EURST to bypass expensive transfer fees charged when making fiat remittances to their families back home.
‘EURST enables, what I believe, are the fundamental basic financial operations everybody is supposed to have access to’ – Simone Mazzuca
Equality and accessibility are what digital advancements are creating, and financial equality and operational possibilities should not be limited due to governmental restrictions. EURST portrays a system that is secure, open, operational and able to comply with regulations. Maybe, instead of further restrictions, the European Union can embrace possibilities like EURST provides, and make us all feel a little more united.