European Currencies And DeFi With e-Money Stablecoins Come On The Elrond Network
Cryptocurrencies are accepted as a form of payment in a growing number of eCommerce websites, stores, or even public administration, all over the world. Furthermore, blockchain technology is being added to the technology stack of enterprises and institutions that look to transfer value more efficiently.
The inherent volatility of the crypto markets has led the early adopters to opt for stable-coins, which are usually pegged to the US dollar. The additional conversion needed for most non-US entities looking to use blockchain technology can sometimes negate the benefits.
This is why we are excited to announce that European stablecoins EUR, CHF, SEK, NOK & DKK issued by e-Money will circulate on the Elrond mainnet!
“The collaboration with e-Money will accelerate the integration with our European partners, who are looking for native currency options for the markets they operate in.” said Beniamin Mincu, Elrond CEO.
e-Money is committed to bringing financial inclusion and to help people around the world to have easy access to digital currencies whilst bridging blockchain with the traditional financial system. Built on Cosmos, e-Money supports a range of fiat-stablecoins which are fully backed with actual bank deposits and government bonds.
e-Money stablecoins are interest-bearing, where the interest accrued on the underlying assets is reflected in the value of the tokens, conferring these financial benefits onto token holders. Additionally, the fidelity and transparency of e-Money stablecoins will be ensured by Ernst & Young quarterly audits to ensure Proof of Funds.
The collaboration will look to issue e-Money stable coins as tokens circulating on the Elrond Network as ESDT tokens. EUR, CHF, SEK, NOK & DKK stable-coins issued on e-Money will be usable in Elrond payments & DeFi integrations within our growing European ecosystem. They will be available in H1 2021, pending the activation of ESDT tokens on the Elrond mainnet.
“We were happy to learn just how big Elrond is in Europe! Together we will bring e-Money stable-coins to a broader audience and will further explore additional integration opportunities.” said Martin Dyring-Andersen, e-Money CEO.
The collaboration is important for the Elrond ecosystem as we are able to add European currencies to our previously all-USD roster of stablecoins. This will facilitate faster integration with our EU partners and accelerate our growth in Europe.
Elrond is the internet-scale blockchain, designed from scratch to bring a 1000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two key innovations: a novel Adaptive State Sharding mechanism, and a Secure Proof of Stake (PoS) algorithm, enabling linear scalability with a fast, efficient, and secure consensus mechanism. Thus, Elrond can process upwards of 15,000 transactions per second (TPS), with 6-second latency, and negligible cost, attempting to become the backbone of a permissionless, borderless, globally accessible internet economy.
The e-Money protocol is built for the issuance of a range of interest-bearing currency-backed stablecoins reflecting various world currencies. Each token is backed by a reserve of assets denominated in its underlying currency. e-Money currently supports the Euro (EUR), Swiss Franc (CHF), Swedish Krona (SEK), Norwegian Krone (NOK) and the Danish Krone (DKK) with a host of additional currencies pegged for release in 2021. The project is dedicated to total transparency with quarterly reserve audits performed by Ernst & Young.
Unlike most existing stablecoins which aim to maintain a static 1:1 peg with their underlying assets, the value of e-Money’s currency-backed tokens continually shifts in line with the interest accrued on the reserve assets. This means that holders benefit from the interest accrued on their assets while they sit securely in your wallet. The e-Money blockchain supports instant payments at scale and includes a DEX for easy conversion between currencies. e-Money expects to integrate with Cosmos Hub, Ethereum, Avalanche, and Elrond in the first half of 2021.