Just-In: Coinbase To Support 1:1 Euro to EURC Conversion Under MiCA Rules

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As an analyst with extensive experience in the crypto market, I find this development to be a significant stride forward for Coinbase and the EU-based digital economy. My career in finance has taught me that stability is crucial for fostering trust in any financial system, and EURC’s 1:1 pegging to the euro offers just that – a reliable, less volatile medium of exchange.

Starting from August 28, users on Coinbase can exchange euros for the Euro-linked stablecoin, EURC, at a straight 1:1 rate. This is significant because EURC complies with the Market in Crypto Assets (MiCA) rules established by the European Union. By incorporating this function, transactions within the EU will operate seamlessly and efficiently while adhering to these regulatory standards.

Coinbase To Support 1:1 Euro to EURC Conversion

Based on current information, it’s been announced that Coinbase will introduce a direct exchange feature for Euro (EUR) to the stablecoin EURC starting from August 28. This service can be accessed through Coinbase Advanced, ensuring users won’t have to pay any transaction fees. This new feature is expected to make the platform more attractive for those interested in secure transactions within regulatory guidelines.

Moreover, this latest offering conforms to the MiCA guidelines set by the European Union, designed to harmonize cryptocurrency transactions throughout Europe.

After the launch of the latest feature, it has been decided that the cryptocurrency exchange will establish a new EURC-USDC trading pair and discontinue both the EURC-EUR and EURC-USD pairs effective from August 29th. The exchange made this announcement recently.

The modifications are made to facilitate seamless and optimal exchange and trade processes involving traditional currencies (fiat) and digital stablecoins.

Significance of EURC in the Crypto Market

Furthermore, the integration of EURC by Coinbase is a significant milestone for both the company and the cryptocurrency market, specifically within the European Union. As its value is tied to the euro, EURC serves as a stable form of exchange, minimizing the usual volatility seen in digital currencies. By aligning with MiCA regulations, it establishes a pattern for compliance and security in crypto financial transactions.

Euro-linked stablecoins make up about 92% of the total stablecoin supply on the Ethereum blockchain, with those pegged to other currencies, notably the US dollar, comprising the remaining portion.

Support For Polygon Ecosystem Token

Apart from this update, Coinbase has expanded its services by incorporating the Polygon Ecosystem Token (POL) into its trading system. This integration, scheduled for August 26, means that the trading platform’s ticker symbol will change from MATIC to POL.

This development is part of the crypto exchange efforts to support innovations on the Polygon and Ethereum networks. In preparation, users will temporarily cease depositing MATIC on the Polygon Proof of Stake (PoS) system. 

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2024-08-22 12:55