Quantoz Payments, a subsidiary of Netherlands-based blockchain company Quantoz, has recently obtained a license from the Dutch Central Bank to operate as an electronic money institution. This authorization allows Quantoz Payments to issue its first regulated and programmable euro currency, called EURD, on the Algorand network. The launch of EURD is expected by the end of this year and will be accessible to businesses and consumers across the European Economic Area (EEA), regardless of whether they have a traditional bank account.
Introducing EURD: A Regulated Digital Euro with Compelling Features
EURD is not a cryptocurrency or stablecoin but rather an electronic money token that falls under a specific category distinct from central bank digital currencies (CBDCs). Furthermore, EURD has been carefully designed to comply with regulations governing the issuance of electronic money tokens on distributed ledgers, including adherence to the Markets in Crypto Assets Regulation (MiCAR).
Some of the most compelling features of EURD include:
- The capacity to issue all euros circulating on Algorand
- Processing thousands of transactions per second instantly
- Economically viable microtransactions
- Facilitating various scenarios such as compensating sensors for data and enabling machine-to-machine transactions
As a result, businesses and individuals within the EEA can benefit from the numerous advantages of digital currency without the risks associated with cryptocurrencies or concerns over red tape surrounding CBDCs.
Eric Wragge, Global Head of Business Development at the Algorand Foundation, on Quantoz’s Achievement
In a statement, Eric Wragge, Global Head of Business Development at the Algorand Foundation, congratulated Quantoz on this significant achievement and expressed excitement about collaborating with them on use-case development and product rollout. As a result, the introduction of EURD to the Algorand network will support the growth and innovation of projects utilizing both blockchain technology and regulated digital currencies.
Easing Integration for Developers: APIs and Open-Sourced Payment App
Quantoz seeks to create an environment that encourages widespread adoption and integration of EURD into various applications and systems. To achieve this, developers interested in integrating EURD into their applications can utilize Quantoz’s APIs or their open-sourced payment app without requiring extensive expertise in blockchain technology. By making the integration process more accessible, Quantoz hopes to see a broader range of innovations and implementations within the financial industry and beyond.
Potential Use Cases for the Regulated Programmable Euro
The launch of EURD presents tremendous opportunities for businesses looking to leverage digital currencies for novel applications and processes:
- Remittances: Instant transfers between parties located anywhere within EEA;
- Payments: Facilitation of business-to-business (B2B), business-to-consumer (B2C), and consumer-to-consumer (C2C) transactions;
- Financial Inclusion: Accessible banking services to those without traditional bank accounts;
- Machine-to-Machine Transactions: Enabling devices to autonomously make payments on behalf of users;
- Data Monetization: Compensating users for sharing data or information with interested parties;
- Affordable Microtransactions: Broadening the scope of transactions by reducing costs and facilitating smaller payments.
Looking Ahead: The Future of Digital Currencies within EEA
The introduction of EURD showcases the potential for regulated digital currencies to play a significant role in innovating operations across industries. As the access to programmable electronic money tokens becomes more prevalent, businesses can look forward to leveraging these advancements to optimize their processes and bring innovations to consumers.
With the Algorand network providing an efficient platform for the regulation-compliant digital euro, coupled with Quantoz Payments’ open-sourced assets and APIs, the future of digital currency adoption in the European Economic Area looks promising. Companies within the EEA stand to benefit significantly from this development as they continue to explore new applications for digital currencies and strive to enhance their services and offerings for their customers.
