EUROe Stablecoin and Concordium: Revolutionizing Online Transactions

January 10, 2024

The strategic integration of the EUROe stablecoin by Membrane Finance represents a huge financial paradigm shift, underpinned by Concordium as the most regulation-ready L1 blockchain. The move not only provides stability but also builds a regulated, secure, and future-proof ecosystem for both companies and investors.

Before we delve into the details surrounding this integration, let us first examine what stablecoins are, understand their importance in the Web3 space, and their vast significance for the Concordium ecosystem to have a native stablecoin.

What are stablecoins?

Stablecoins are cryptocurrencies that are pegged to another asset such as fiat currencies to maintain a consistent value. The goal of stablecoins is to remain stable in value and not fluctuate like volatile cryptocurrencies such as Bitcoin, for example.

Currently, Tether (USDT) is the predominant stablecoin with a market capitalization of around USD 87bn. The main appeal of stablecoins for businesses is that they work as a bridge between traditional finance and the Web3 digital economy. Stablecoins make money programmable, which means that the versatility and financial opportunities of money are greatly enhanced by the blockchain space, while at the same time remaining pegged to more stable assets such as fiat money (USD, Euro) gold, and other types of commodities.

In the case of EUROe, we encounter a stablecoin that stands out of its formidable backing, while also holding all EURO funds in European bank accounts, as opposed to other stablecoins such as Circle’s EURC stablecoin, where the EUR is held in US banks.

EUROe: Benefits for companies

Companies are yet to enjoy the full benefits of blockchain technology. The potential of blockchain technology has often stayed underutilized due to regulatory, legal, tax, and accounting hurdles in traditional finance.

However, Concordium is about to change this now through the integration with EUROe, by actively tackling these issues paving the way for smoother adoption. EUROe is an electronic money token, considered a cash equivalent in accounting, removing the operational, taxational, and financial frictions related to the use of blockchain-based assets.

The EUROe is a fully regulated financial instrument, supervised by financial authorities with funds placed in regulated European financial institutions. For companies, the choice to build on Concordium is a step towards a future where digital assets align with traditional financial stability.

Membrane Finance guarantees that each EUROe token is backed 1:1 with real-world Euros. This full backing ensures that companies can confidently engage with the digital economy without the foreign exchange risks typically associated with public blockchains.

Moreover, the ability to issue and redeem EUROe in direct correlation with Euro deposits eliminates the financial unpredictability that drives many companies away from entering the blockchain space.

Altogether, the integration with EUROe will enable companies to get the best of both worlds when it comes to their operations. On the one hand, they will enjoy the benefits of programmable money on Web3, alongside the versatility and convenience of reduced transaction costs. On the other hand, they will remain compliant and operate safely in a highly regulated environment with their funds secured by the strength of the European regulatory system.

EUROe: Benefits for users on Concordium

  • Full Backing by Fiat Euros: Each EUROe token is backed by an equivalent amount of euros held in a regulated European bank. This ensures that EUROe is always worth 1 euro, ensuring its stable value and eliminating the risk of volatility.
  • Regulatory Compliance: EUROe is regulated by the Financial Supervisory Authority of Finland (FIN-FSA) and issued by Membrane Finance. This assures that EUROe adheres to stringent financial regulations, complies with all applicable financial regulations, and is subject to regular audits.
  • Scalability and Efficiency: Concordium’s blockchain technology is designed to handle high transaction volumes efficiently. This makes EUROe ideal for use in a wide range of applications, including payments, remittances, and decentralized finance (DeFi).
  • Global Accessibility: EUROe is a euro-based stablecoin, which means that it can be used for cross-border payments without incurring currency exchange fees.
  • Low Cost: Transactions on the Concordium blockchain are completed in seconds and are very inexpensive. Regardless of the value, transactions cost less than 10 cents. Furthermore, all transactions can be settled free of charge for the user of an application, through the implementation of sponsored transactions If the funds need to be transferred from Concordium based applications to a traditional account, the EUROe integration will allow users on Concordium to mint or redeem with a simple 1:1 exchange via on and off ramps , or for larger amounts directly with Membrane Finance through their UI or API
  • Interoperability: EUROe integrates seamlessly with existing financial systems and applications. The EUROe integration includes a EUROe bridge, allowing EUROe customers to seamlessly move EUROe from other supported blockchain environments into Concordium and vice versa.
  • Safer user experience: Another highlight for users on Concordium is the risk reduction. It’s no longer necessary to bridge CIS2 tokens to stablecoins like USDT or USDC, simply because a native stable coin has no bridge This results in an easier and safer user experience, significantly reducing the exposure to the risks that often plague less-regulated environments in the dynamic world of digital assets.

Practical Application: The Virtual Beer Store

Imagine a beer store. The prices are denominated in Euros, which offers stability and familiarity. The ID-layer of Concordium’s blockchain allows secure age verification without sharing personal data, enhancing privacy and security. Transactions are time stamped on the blockchain, ensuring transparency and low costs.

This example demonstrates Concordium and EUROe’s potential in creating a secure, private, and efficient transaction environment.

Let’s break down the main points:

Currency Stability:

  • All prices in the virtual beer shop are denominated in Euro. This provides stability and familiarity for both merchants and customers, as they are dealing with a well-known and widely used currency.

Privacy and Age Verification:

  • Concordium users store their date of birth and country securely on their accounts after verifying them with an independent 3rd party of their choice. This information can be used for age verification without sharing sensitive personal data thanks to zero-knowledge-proofs (ZKPs).
  • When a customer attempts to purchase beer, the beer store can query the customer’s app to confirm their age. Using magical mathematics (ZKPs), the app responds with a simple confirmation that the customer is of the required age, nothing more. Thus avoiding the need to send copies of ID cards or private documents.

Data Security:

  • The verified data stays on the user’s device, and no unnecessary private information is transmitted during the age verification process. This ensures that no data is stored, so there’s no risk of data breaches or leaks. Even Concordium has no access to your data.

Blockchain Timestamping:

  • Transactions are time-stamped and recorded on the Concordium blockchain. This provides an immutable record of the transaction and inherently the age verification process, enhancing transparency and accountability.

Low Transaction Fees:

  • Concordium has low fees for transactions. This is advantageous for both merchants and customers, as it keeps transaction costs low.

Security and Auditability:

  • The use of Concordium ensures secure and irreversible transactions. The blockchain’s decentralized and tamper-resistant nature provides a high level of security.
  • The recorded transactions can be audited by authorities if necessary, providing a transparent and accountable system.

No Middleman Involvement:

  • The transaction process does not involve any middleman, reducing the complexity and cost associated with intermediaries, and increasing safety

In summary, the example showcases how Concordium and EUROe create a secure, privacy-focused, and efficient environment for transactions. The combination of a stable currency, privacy-preserving technology, blockchain timestamping, and low transaction fees makes it an attractive solution for everyday commerce.

Concordium: Building a safer tomorrow

The combination of EUROe and Concordium is a powerful match that has the potential to propel blockchain adoption. Concordium’s foundational ID layer offers a unique blend of accountability and privacy in transactions, positioning it as an ideal platform for regulated entities such as EUROe.

Moreover, with stable transaction fees pegged to the Euro, Concordium, together with EUROe, delivers a sense of traditional banking predictability to the crypto world, streamlining financial operations.

EUROe will connect Concordium to classical financial systems, effectively making the multi-trillion banking system an integrated component of Concordium, and every other blockchain in synergy with EUROe, enhancing cross-chain collaborations and amplifying Concordium’s interoperability.



EUROe is currently available via

Benefits for Companies and Users

  • For Companies: EUROe on Concordium offers a blend of digital and traditional financial stability, removing operational frictions and enabling confident engagement with the digital economy.
  • For Users: The integration facilitates easy minting and redemption, shielded transactions, and reduced risks, enhancing the overall user experience on Concordium.

The perfect blend for the future economy

By combining the best features of blockchain with the stability of the euro, EUROe offers a solution that is both secure and scalable. It has the potential to revolutionize the way we interact with money online, making it safer, more efficient, and more accessible to everyone. The integration will play a key role in cementing Concordium’s vision for regulated DeFi. This union marks a powerful stride towards a cohesive financial future, where traditional and blockchain finance seamlessly converge.