e-Money Ceases Issuance of Euro-backed Stablecoin eEUR

Stablecoin issuer e-Money announced the issuance of eEUR, a Euro-backed stablecoin, stopped starting from January 9th. Users can redeem their eEUR directly for Euros on e-Money until March 6th, 2023, or swap the stablecoin for other assets on Osmosis.

e-Money said, while it was not directly affected by the negative events in 2022, the stablecoin business relies heavily on integration with traditional finance, and financial institutions' interest in cryptocurrency has waned, which is a challenge for e-Money. In addition, the demand for non-USD stablecoins is low, and the upcoming European MiCA legislation is expected to hinder the scalability of Euro-backed stablecoins and limit business opportunities in the sector. As a result, e-Money took the decision to unwind the issuance of eEUR.

The e-Money blockchain will continue to operate, with a chain upgrade planned for Q1, 2023, to integrate the latest Cosmos SDK features.