Monerium / Mar 20, 2023


2 min read

Why the EURe is better protected than USDC and USDP

Not all money tokens are created equal

Monerium EURe euro token holders have stronger legal protections than holders of the USD “stablecoins” USDC and USDP. Here’s why.

The US does not have a legal framework for “stablecoins”. That’s about the only thing US regulators and stablecoin issuers agree on. The regulators have “declared a war” on stablecoins, but the CFTC and the SEC don’t even agree which agency has jurisdiction over stablecoins under existing rules. The issuers of USDP (Paxos) and USDC (Circle), have called for Congress to remove the legal uncertainty. Until Congress acts, the holders of Paxos and USDC are left in a legal no man’s land.

Monerium issues EURe under a proven legal framework for digital cash: European e-money. E-money has served as “stablecoin” in Europe since 2000. Dozens of issuers including PayPal, Revolut, and Wise have offered online and mobile financial services under e-money licenses. And under the Market in Crypto-Assets regulations, “stablecoins” must be issued as e-money.

The EURe is the first authorized and regulated euro e-money token on-chain. The EURe is

  • legally yours, held in segregated accounts either with banks or directly in high-quality liquid assets
  • redeemable on demand 1:1
  • overcollateralized by at least 2% of the amount issued in reserve capital

Any funds we hold on your behalf with a bank

  • are your direct priority claim
  • are covered by European deposit insurance
  • have priority over senior bank creditors under European “bail-in” rules

Holders of USDC and USDP do not have comparable assurances.

Unlike Circle and Paxos, we decided to issue the EURe under the simplest and safest legal framework for digital cash in a major jurisdiction: European e-money. That’s not to say it is risk-free, nothing in finance is. But it offers you maximum protection if we or our safeguarding partners have unanticipated difficulties.

Your money, in your wallet. No compromises.