e-Money Ceases the Issuance of Euro Stablecoin, Citing Ongoing Bear Market

e-Money, an electronic payment system built on the Cosmos network, has stopped the issuance of its euro-backed stablecoin EEUR, saying that the prolonged bear market was the reason for the decision.

The firm announced the news in a blog post, stating that the development became effective on Jan.9, 2023. Meanwhile, e-Money stated that users have until Mar.6, 2023, to redeem their EEUR stablecoins.

Citing reasons for discontinuing EEUR stablecoin issuance, e-Money stated that the bear market dampened e-Money's ability to continue with its EEUR stablecoin project. The market decline has made any e-Money integration with traditional finance challenging, the project stated.

Furthermore, e-Money stated that the European Union's forthcoming MiCA legislation could be a problem for EEUR stablecoins. 

Concerning redemption options, the blog post stated that customers making EEUR redemptions below 100,000 can swap their tokens for USDC, Cosmos native token ATOM, or OSMO, on Osmosis, the largest decentralized exchange (DEX) on the Cosmos ecosystem.

Also, users redeeming above 100,000 EEUR can swap their tokens directly for euros. Such customers will have to go through KYC, with the redemption process taking five business days. e-Money stated that redemption would have to be done in batches to minimize the impact on the market and price slippage.

(Source: Crypto.news)