EURR Stablecoin project in Cosmos ecosystem is shutting down after 2 years

Reportedly, e-Money, a stablecoin project in the Cosmos ecosystem, is discontinuing issuance of its ‘EEUR’ stablecoin. This will happen on March 6, 2023 and was announced via a blog post.

Explaining the decision, the team behind e-Money wrote the following:

The lack of real-world applications for blockchain has led to low demand for non-USD stablecoins, and upcoming European MiCA legislation is expected to hinder the scalability of euro-backed stablecoins and limit business opportunities in the sector. The European MiCA legislation in its current form favors commercial banks as future issuers of Euro stablecoins, harming innovation in the European Union.

Anyone who owns EEUR tokens can redeem them until the deadline for any digital asset of their choosing, including ATOM, OSMO or USD Coin. Anyone who owns more than 100,000 of these tokens is advised by e-Money to opt for direct redemption. This takes about 5 business days and requires KYC, but is said to be the best solution for such large amounts. Also on Twitter the team confirmed the discontinuation of their EEUR token.

Last year was a tough year for the crypto industry

In 2017, e-Money was founded on the Cosmos blockchain. Its mainnet was then launched in 2020. That same year, e-Money initially began issuing their EEUR stablecoin. Initially, the Ethereum bridging technology was used for this.

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Last year, the crypto industry still faced many challenges, with both centralized and decentralized entities experiencing difficulties. Various parties also went bankrupt during the year. While e-Money was not directly affected, the stablecoin business relies heavily on integration with traditional finance, and financial institutions’ interest in cryptocurrency has waned following the events of 2022.

However, this interest could pick up again in the future. However, whether and when this will happen is not yet known.

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