Stablecoins Beyond the Dollar: Examining Euro, Yen, and Others
Stablecoins have brought transformative changes to the monetary landscape by offering innovative solutions to the challenges faced in the traditional financial system. As an important component of a diverse range of digital assets, stablecoins have become a "bridge" between the volatile nature of cryptocurrencies and the stability of fiat currencies such as the U.S. dollar, euro, yen and others.
In this article, we'll explore non dollar stablecoins and find out how stablecoins in different currencies change financial transactions.
The Role of Non-Dollar Stablecoins in Shaping Crypto Finance
From our recent article, we learned that there are 2 main types of stablecoins, one of which is pegged to fiat money. Many people mistakenly assume that this type of stablecoin is only pegged to the US dollar, because the most popular ones USDT and USDC do so. But there are also other assets such as euro stablecoins or Japanese yen stablecoins that have just as much impact on the financial market as dollar stablecoins.
Central governments in the markets of Europe and Asia are taking steps to bring cryptocurrency and blockchain innovation to their countries. Therefore, the issuance of non-dollar stablecoins is gaining popularity in these regions, because they allow us to conveniently store alternative currencies (euros or yen) while offering full control over our finances. That’s why euro pegged stablecoin and yen stablecoin are the perfect solution for those who aren't interested in dollars.
Analyzing Stablecoins in Euro, Yen, and Others Worldwide
Stablecoins in Euro
If you live in the EU and use DeFi exchanges, to generate income from stablecoins or for investing, you can exchange your euro fiat for euro backed stablecoin and get passive income in return. With this, euro-stablecoins are designed to solve the problem of cryptocurrency volatility. By being pegged to the euro, such coins provide price stability, which means that if you have 100 euro-stablecoins, you always know that they are equal to 100 euros. Which makes the crypto euro stablecoin more predictable and reliable to hold and use.
Currently, STASIS EURO (EURS) and Tether EURt (EURT) are the most popular among the best euro stablecoins. Both tokens were created according to the ERC-20 standard on the Ethereum platform and their developers declare the transparency of reserves and regular inspections by Europe's largest auditing and consulting companies. The market capitalization of EURS is more than 130 million dollars, and the capitalization of EURT is about 40 million dollars.
Stablecoins in Yen
Yen stable coin opens up the possibility for fast and easy settlement, convenient storage and transactions, and of course contributes to risk mitigation by being backed by fiat money. Moreover, the presence of these coins on the blockchain and integration with a network of partner exchanges means that users from around the world can seamlessly interact with stablecoin yen tokens in their preferred ways.
GYEN and JPY Coin act as innovative solutions in the cryptocurrency world. They are pegged to Japanese yen and can be used to purchase NFTs or to exchange crypto assets for goods in the real world.
How Stablecoins in Different Currencies Reshape Transactions
Mentioned above euro crypto stablecoin and others solve a number of problems that reshape transactions:
- Mitigating volatility
By utilizing the backing of paper currency and maintaining a euro coin stablecoin or pegged price correlated to the euro, yen (JPY), and other currencies, non-dollar stablecoins provide great assistance for investors looking to preserve the value of their assets without the need to leave the dynamic cryptocurrency industry.
- Enhancing transparency
The decision to base stablecoins on the cryptocurrency blockchain is in line with the desire for transparency. Since all assets and transactions in circulation can be easily shared with anyone, such a move not only solves problems in the cryptocurrency industry, but also serves as a solution to the transparency deficit present in traditional finance.
- Increasing liquidity and market volume
Non-dollar stablecoins inspire confidence in many due to their backing by fiat currencies. As a result, the popularity of these coins in the cryptocurrency market increases trading volume and market capitalization. Therefore, the growing number of market participants interacting with euro stablecoin or stable coin yen leads to more liquidity and increases efficiency and fair pricing in the market.
Strategies of Using Stablecoins in Euro, Yen, and Others
There are many strategies for using non-dollar stablecoins. Let's consider a few of them:
- Inflation protection
Many fiat currencies are not backed by physical commodities, so they are subject to inflation. And as more fiat currencies come into circulation, their value will gradually decline over time. That's when you may need yen or euro stablecoin, which are known for their relatively slow inflation rates. Anyone with an internet connection can easily purchase stablecoins and try to solve the inflation problem.
- Transaction Processing
Using euro stable coin and others can help you easily transfer funds to people around the world and pay for goods and services in your preferred method and currency. Bypassing the complex verification procedures or restrictions of traditional banking systems.
These methods are not recommendations and have their own advantages and disadvantages. Therefore, it is important to make your own decision and approach the issue of choosing a strategy with full responsibility.
The Future of Stablecoins in Euro, Yen, and Others
The future of stablecoins can be called promising. However, it will largely depend on the growth of their market capitalization.
In addition, it is not worth trusting only dollar-based collateral, because an obstacle in the form of its strict regulation can arise at any time. Therefore, many financial institutions will rather continue to have euro stablecoin crypto and others in mind and may turn to solving the problems with their regulation in the traditional financial industry. This could potentially facilitate the integration of stable assets into the mainstream market, where digital and fiat currencies no longer exist separately, but become part of a single financial dialog.