EURC
Crypto Overview
Overview
EURC (Euro Coin) is a euro-backed stablecoin issued by Circle, the same company behind USDC. Launched in 2022, it is designed to maintain a 1:1 peg with the euro through full backing by euro-denominated reserves held in regulated financial institutions.
Intended Utility
The primary purpose of EURC is to serve as a digital representation of the euro on blockchain networks, facilitating fast, low-cost cross-border transactions and providing a bridge between traditional finance and digital assets. It aims to enable efficient euro-denominated trade, payments, and financial services in the digital economy.
Actual Utility and Implementation
EURC operates on the Ethereum blockchain as an ERC-20 token. Circle maintains transparent reserve management, with regular attestations of the euro-denominated backing assets. The reserves are held in cash and cash equivalents at regulated financial institutions. The token has gained adoption among institutional users for cross-border payments and trading pairs on major cryptocurrency exchanges.
Business Model Analysis
Circle generates revenue through treasury management of the reserve assets, not through interest-bearing activities. The model focuses on providing a stable, fully-backed digital euro representation rather than speculative trading. The company maintains regulatory compliance and transparency through regular attestations and adherence to financial regulations.
Token Distribution and Governance
EURC is a centralized stablecoin where Circle maintains control over issuance and redemption. There is no token allocation to founders or investors as the supply is purely based on the amount of euros held in reserve. Each EURC token is backed 1:1 by actual euros in regulated bank accounts.
Crypto Impact
To assign a comfort level investing in EURC from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to EURC.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.