Since Nash exchange is mainly addressing European customers, I think there is a need for EUR stable coins (i.e. Stasis EUR, Tether EUR etc.). This would also comfort new customers who feel uncomfortable with USD pegged stable coins (reducing currency risks).
The availability of a EUR pegged stable coin would also facilitate FX trading on the nash exchange and especially be a very good combination with the trading bot functionality.
Myself and a lot of folks out there are holding a portfolio in USD denominated shares. For Europeans it is very disappointing when share prices rise while their portfolio is deep in the red, which is mainly caused by falling dollar prices. So if there would be USD and EUR pegged stable coins on the nash exchange, in combination with a lending function, traders could hedge their USD denominated US shares. US shares are dominating the stock market worldwide. So for the nash exchange this would open up a huge potential for future growth. Furthermore it would facilitate new income opportunities for holders of stable coins (lending).
What euro stablecoins exist except the Stasis one?
Stasis EURO (EURS is an EIP20 token) is, according to my own quick research, the only regulation compliant (regulated by Malta Virtual Financial Asset) EUR pegged stable coin, which is publicly tradable on exchanges (https://eurs.stasis.net/for-exchanges/) right now. Since EUR is the world’s second most traded currency, offering EURS might give Nash an additional boost of adoption, especially for European customers. Furthermore, just imagine being able to use EURS as a pay option through Nash Link! This could be an ultimate edge.
Very good idea!
I would personally love too (as I live in the E.U.), but our internal compliance is a blocker on this matters - I cannot elaborate on all the details but on Europe there is specific regulation around stablecoins already by applying the eMoney concept and that requires a specific licensing and additional reporting and KYC constraints. That is the reason why other European market leaders don’t offer a Euro stablecoin even when they offer /EUR markets.
Hello Fabio, thank you for your reply. I really appreciate your work. I agree, EURS is still hardly adopted by other major exchanges, although Bitfinex already offers it (https://trading.bitfinex.com/t/EURS:USD?demo=true).
My understanding of your reply is that it would cause you a lot of additional work and reporting to onboard EURS. Is there any way that we, the community, can help you facilitate that?
Hey Fabio, does this mean that its easier to offer EUR markets than stable coin EUR markets. Does this mean we will have the possibility in the future to trade on a EUR market?
If Nash got some kind of banking license i guess it could be possible. But i think some parts of the engine needs to be changed and i don’t think Nash can offer EUR pair decentralized since it’s not on a blockchain. Correct me if i’m wrong tho.
@canesin I just want to mention here that Stasis is relocating their official payment provider to Switzerland. Since January 2021, SCB AG will become an official provider of the STASIS Sellback service. Maybe this makes it easier to integrate the EURS in the Nash Exchange. I don’t give up…
@canesin According to the recently published EU “Markets in Crypto-Assets Regulation (MICA)”, which will apply around 2022, a EUR pegged stablecoin is considered as an E-Money Token (EMT), which is different from traditional E-Money (which is regulated after Electronic Money Directive 2 (EMD2)).
As far as I read it, MICA puts the following prerequisites and obligations to the issuers (not the crypto service providers).
I am unaware of specifics. Ping @fabwa .
Payment Providers are starting to adopt quite fast. There is one reason for this: The EU is the world’s largest trading block. Having a EUR pegged stable coin on nash would give us a big advantage over other exchanges and also boost Nash link. I think it’ll be worth running the extra mile.
SatoshiPay to Become First User of German Bank’s Euro Stablecoin
It seems that the issuance of EUR stable coins is speeding up, especially from established companies.
Quote: " A leading example of a digital currency for the European economy is EURST, a USD asset-backed and live-audited stablecoin created by Mr Simone Mazzuca. This digital currency from Wallex Trust represents 1€ worth of USD, secured by the accounts of the federal reserve and Wallex Trust."
One of the main reasons why a EUR-backed stable coin is lagging behind the USD is mainly the negative interest rates, one has to pay holding EUR them in custody. Well, this example shows how to solve that problem.
I guess soon other exchanges will start to onboard EUR-backed stable coins. So I think nash still could be leading the way and by this attract new customers, especially because right now it adresses mainly the EU-Markets.