Stablecoins have become extremely popular in the last few years, given their backing with real-world assets, offering better liquidity as well as protection against volatility. In theory, these coins, with their fiat currency backing, are a great way to promote crypto among the masses.
Being backed by a fiat currency means that a stablecoin such as USDT will automatically adjust its price by rebasing according to the USD price during fluctuations in the crypto market, offering better stability. However, this concept only works if the stablecoin has enough assets to back it.
Collateralized stablecoins are mainly thought of as unsafe as they vary in size, liquidity, and riskiness. However, EURST has come as a saving grace for USD-backed stablecoins. While being backed by USD, EURST digitizes the Euro and is live audited to ensure faster, cheaper transactions that are both secure and borderless.
Why Are USD-backed Stablecoins Scrutinized?
The world’s financial institutions are worried about the rapid growth of stablecoins as, in time, they could affect the functioning of short-term credit markets. These risks, linked to the liquidation of reserve holdings of stablecoins, can increase the pressure on the government for tighter regulations.
Additionally, stablecoins operate on the assumption that they can quickly liquefy their reserve to redeem. The amount held in a stablecoin reserve must be equal to the circulation amount for this to work. However, these reserves do not sit idle in bank accounts and are used for various investment opportunities. Unfortunately, however, these transactions are not public, which causes a lack of information that alarms holders.
EURST is Different
EURST is a USD-backed and live-audited stablecoin that is entirely transparent about its spending decisions. It is the largest USD-backed stablecoin developed by Wallex Trust and secured by both Wallex Trust and Federal Reserve accounts.
This combined reserve from Wallex Trust and Federal Reserve ensures that EURST will have a reserved supply indefinitely, which will result in lower volatility. EURST is issued on the Ethereum main net of ERC-20 standards with advanced blockchain capabilities to ensure faster, more secure transactions.
EURST digitizes the Euro currency and is one of the most significant Euro Stable tokens that will reinvent the European economy with the use of its advanced features. As EURST is live audited, it will ensure complete transparency about every spending decision, including the use of reserved funds.
The immediate benefits of EURST are:
Lower restrictions and better leeway to provide investors with a safer and faster investment opportunity than other USD-backed stablecoins.
EURST provides value to the Euro without the prerequisite of opening a bank account in the country.
EURST allows direct usage to deposit funds in crypto exchanges instead of fiat for trending.
Overseas workers can use EURST for fiat remittances to avoid hefty transfer fee charges.
EURST portrays an improved version of stablecoins that will pertain to every regulation and offer better investment opportunities to the rich. For more information on the project, visit their official website.