From Asia to Europe, major central banks around the world are expected to announce their own digital currencies soon. This is proof that stablecoins like EURST are on the right track, and they can serve to show how national economies should reinvent themselves after the current crisis.
Why Everyone Wants a CBDC Now
There are many discussions in economic forums and reports in the financial press today about central bank digital currencies (CBDCs) and how they can help build a new post-Covid economy. Many countries in different regions are said to be developing a version of a CBDC as far apart as Thailand and Ukraine. In fact, major central banks have been working on CBDCs for a few years now, and the European Central Bank’s upcoming digital euro and China’s digital yuan are expected to be among the first.
Even cryptocurrency’s usually narrow-minded opponents are now being forced to admit that digital currencies are an inevitable reality. For example, none other than “Dr. Doom, ”economist Nouriel Roubini, now predicts a “great revolution” will come in the coming years as many central banks launch their own digital currencies.
This is mainly because central bankers are seeing the success of stablecoins, digital tokens linked to national currencies, and they fear being left behind because people choose to use the new innovation. Stablecoins also serve as a clear example to the world’s central bankers of how digital currency technology works, and the positive impact they can have on their regional economies.
A leading example of a digital currency for the European economy is EURST, an asset-backed and live-controlled stablecoin created by Mr Simone Mazzuca. This digital currency from Wallex Trust represents 1 € USD, backed by the accounts of the Federal Reserve and Wallex Trust.
“Digital currencies representing countries or states is now a very hot topic. This happens because stablecoins work. They are effective. EURST is an example for the European economy, but for us EURST is also just the beginning, it is a taste of what can be done. Our ambition is to ‘beat’ the system and build the system. – Simone Mazzuca
The way forward with EURST
One of the greatest technological challenges for digital currencies that will receive official state support is that they must comply with a host of complex financial regulations. Anyone can just issue a token using a blockchain like ethereum, but to integrate with the legal framework at the national level, you have to prove that it is backed by an asset as claimed, you have to prove that it is compliant with regulations and compliance laws , and you need ways to keep bad actors from taking advantage of it.
The Wallex Group, which secures EURST and includes Wallex Trust and Wallex Custody, is a regulated entity with an insurance account and follows strict compliance procedures for AML (5th Directive Anti-Money Laundry) and know-your-customer (KYC) procedures. In this way EURST can complain about European regulations and become integrated with the traditional financial system. This allows businesses and individuals to interact with the system they are accustomed to while taking advantage of the many benefits of digital assets.
“This is where the new economy is headed and for companies like us, The Wallex Group and EURST, it is just the beginning. We give people the opportunity to regain financial power. We let people create startups and use this technology to the best of their ability. – Simone Mazzuca
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