Cosmos EUR stablecoin project to unwind after 2 years

according to a to post On January 9, e-Money, a stablecoin project in the Cosmos ecosystem, said it would suspend issuance of its euro stablecoin EURR from March 6, 2023. Explaining the decision, e-Money wrote:

“The lack of real-world applications for blockchain has led to low demand for non-USD stablecoins. Upcoming European MiCA legislation is expected to hamper the scalability of euro-backed stablecoins and limit trading opportunities in the The European MiCA legislation in its current form favors commercial banks as future issuers of euro stablecoins, which hurts innovation in the European Union."

Until the deadline, users can redeem their EEUR by exchanging their stablecoins for digital assets such as OSMO, ATOM, or USD Coin (USDC) on the decentralized exchange Cosmos Osmosis (OSMO). For amounts greater than 100,000 EEUR, e-Money recommends the direct exchange of euros with e-Money A/S. "This requires KYC/AML and you should allow around 5 business days for processing. Please contact sales@e-money.com to redeem using this option," the firm wrote.

Important Announcement: EEUR Stablecoin Unwind

e-Money A/S has decided to stop issuing its EUR-backed stablecoin

➡️All stablecoins remain fully supported and can be redeemed. Please read our medium post and select one of the redemption options listed ⤵️https://t.co/1yneUFrD7U

— Electronic money (@emoney_com) January 9, 2023

e-Money was founded in 2017 on the Cosmos blockchain and launched its mainnet in early 2020. The company previously worked with the Financial Services Authority and Ernst & Young to "develop a transparent and compliant model for stablecoins that could adapt to negative interest rates in the Eurozone." e-Money initially began issuing EEUR stablecoins in 2020 using Ethereum (ETH) bridge technology and later onboarded Cosmos and Axelar.

"The cryptocurrency industry faced many challenges in 2022, with both centralized and decentralized entities experiencing difficulties. While electronic money was not directly affected, the stablecoin business is highly dependent on integration with traditional finance, and the interest of financial institutions in cryptocurrencies has decreased after the events of 2022".