EURI ( — a stablecoin pegged to the euro that is worth considering.

Олаксус

September 26, 2024

EURI ( — another euro stablecoin that promises us fast and cheap transactions. But how necessary is it for the market? Let's figure out what lies behind the loud statements.

Stablecoins have flooded the crypto space in recent years. Each one shouts about its "uniqueness," but in fact, they are all just digital currencies pegged to fiat. EURI is no exception — yet another attempt by Europeans to keep up with their American counterparts with their USDT and USDC.

Personally, I am annoyed by how the authors of such projects always present them as if they are a revolution in finance. Yes, it's just euros on the blockchain, nothing special.

What is EURI really?

EURI — a stablecoin pegged to the euro, which, as we are promised, maintains a 1:1 ratio to fiat euro. Allegedly, there is a real euro held in reserve for each token. Sounds familiar, doesn't it? I've heard similar claims from dozens of projects, many of which later turned out to be either scams or had issues with backing.

To be honest, I am not very impressed by such projects. We have been watching for years how even the largest stablecoins periodically lost their peg. And who guarantees that this won't happen with EURI?

"Advantages" of EURI that do not convince me

) 1. Is MiCA compliance an advantage at all?

Yes, EURI complies with the Markets in Crypto-Assets regulation. But let's be honest — this is more of a limitation than an advantage. Regulation can protect users, but it also kills decentralization — the very essence of cryptocurrencies. It turns into an ordinary banking product, just on the blockchain.

2. Multichain support - nothing new

EURI operates on Ethereum and BNB Smart Chain. So what? Today this is standard practice for any self-respecting token. There is no technological breakthrough here. Moreover, I would prefer to see support for L2 layers on Ethereum to avoid paying astronomical fees.

3. Pegging to the euro - so what?

I find it amusing how the project tries to present the peg to the euro as something special. Given the high inflation in the Eurozone, is it worth celebrating that your money is pegged to a currency that is losing value itself? Maybe it would be better to peg to Bitcoin instead?

4. Security audits - minimum standard

PeckShield audits are basic hygiene, not a special achievement. Any self-respecting project should undergo audits. Let's not praise a fish for being able to swim.

The real use of EURI is in question

I don't see any real use cases that couldn't be implemented with existing solutions. International transfers? We already have USDT. Access to DeFi? The same.

When the project talks about "bridging the gap between traditional finance and blockchain", I hear only marketing noise. This gap has already been bridged by dozens of stablecoins before EURI.

I personally doubt that European banks and financial institutions will switch to this token on a large scale. There is too much bureaucracy and conservatism in this field.

What really worries me

The lack of transparency regarding reserves is an eternal problem for stablecoins. Yes, they promise regular audits, but who guarantees their honesty? History shows that even the largest players can manipulate their reserves.

In the crypto world, we have already seen stablecoins lose their peg, leaving users with huge losses. I would think twice before trusting my funds to another newcomer in this market.

EURI is just another stablecoin trying to grab its piece of the pie in an oversaturated market. It may find its niche among European users, but I don't see a revolution here. I also advise you not to be swayed by the marketers' bold claims.