Q&A with STASIS
In case you missed the exciting news, we recently added some new stablecoins to the Wirex platform! One of those stablecoins is EURS and today we've got some exclusive insight with STASIS CEO, Gregory Klumov to explore a little more about what EURS is about.
What is the EURS stablecoin?
EURS is the largest euro-backed digital asset, combining the benefits of the world’s second most traded currency with the transparency, immutability, and efficiency of the blockchain. Our stablecoin is supported by an ecosystem of liquidity providers, custodians, exchanges, payment platforms, and others.
EURS, an ERC/EIP20 token, was the first stablecoin that started to support delegated payments on the Ethereum network. Users no longer have to pay GAS fees to make transactions. Instead, they can pay transaction fees in EURS or any other digital asset supported by the STASIS wallet, which is a huge improvement in user experience.
How important is transparency, security, and trust amongst stablecoins?
Transparency and trust are becoming increasingly important in the cryptocurrency field. EURS stablecoin issued by the STASIS can be considered a proper CBDC pilot launched back in 2018. Our company was the pioneer in stablecoin development in the EU since instant settlement across non-custodial solutions can help Eurozone clients and beyond saddle the evolution curve in payment solutions acceptance and usage. There is an apparent demand for a digital euro on a public blockchain with transparent reserves issued by a private company. Such assets will be the best solution that can be used to compete with the digital dollar in the global remittance and corporate settlement trading markets, including such new and fast-growing sectors as decentralized finance. We are confident that private issuers' legitimization will benefit the underlying currency (EUR) as a payment and settlement tool globally and challenge the USD role of monopolistic currency.
It is fundamental to keep EURS backed by 1:1 to the Euro. STASIS provides an unrivaled level of reserve transparency so that investors can always be confident that their digital assets are fully backed by the appropriate collateral:
- Daily account statements
- Monthly verifications by BDO Malta
- Quarterly audits by BDO Malta
- On-demand verification for an onboarded entity.
Moreover, STASIS maintains high standards of audibility with low-risk and quality counterparties, and we will continue to strengthen our on/off-ramp platform status with institutional-grade quality to minimize the credit risk of all our clients. These transparency procedures keep our credit risk at an appropriate level for any client interacting with us to receive a reliable product. We will continue to build the most transparent stablecoin with low-risk counterparties.
Why do you think it’s so important to bridge the gap between the traditional and digital economies, and what role is STASIS playing in this?
We at STASIS realize that the currently existing E-money policy is severely outdated and can’t be used as a ground for the future development of the financial sector. Most of the other existing stablecoin products are mostly pegged to the dollar. Since USD-backed stable coins heavily dominate the market, Europeans/Asians are often forced into undesired dollar exposure with trim on-chain hedging options. EURS is neither of those and aligns perfectly with the market ripe for transparent digital assets, providing a convenient gateway into the cryptocurrency field and being the largest non-dollar asset. EURS stablecoin seeks to challenge the U.S. Dollar’s dominance in global financial markets.
What makes EURS different from other stablecoins?
Since day one, STASIS has been developing its cryptocurrency with a strong focus on regulations. We’ve accumulated solid experience and expertise in various finance, IT and legal areas to produce a world-class product. More than 200 stablecoin projects have been announced and launched since 2017, and only 30% of the stablecoins ever released continue to exist, according to the data collected by Blockdata research.
By 2021 it has become a popular tool for daily transactions, free of risks and volatility inherent in conventional cryptocurrencies. The potential of stablecoin’s use cases has been recognized in times of crisis, and the demand for EURS is growing steadily in the DeFi field.
How has the popularity of stablecoins changed in the past year?
The cryptocurrency market along with the stablecoin sector experienced substantial growth, especially in emerging Decentralized Finance. The total crypto market cap reached $3 trillion for the first time in history. Stablecoin’s role grew significantly during the DeFi summer 2020 and the ongoing global pandemic. Back in May 2020, the market share amounted to $10 billion. According to data from The Block’s “2022 Digital Asset Outlook” the stablecoin cryptocurrency sector saw explosive growth in 2021, rising by 388% from $29 billion at the start of the year to over $140 billion at the end of 2021, representing a record high.
What do you think the future holds for EURS and other stablecoins more generally?
Due to various statistics, 90% of projects in the crypto market had been considered scams. STASIS has never been engaged in illicit activities or pursued unrealistic goals. We continue to develop a solution that may bridge the gap between decentralized finance and the off-chain market: a true E-currency 2.0. Our team plans to adapt to the crypto industry trends and develop EURS into a multi-blockchain solution to ensure the best market performance and scalability in the future.
However, even if we reach a point when the decision to ban all stablecoins will be taken, our clients will not need to worry: all EURS stablecoins are backed by fiat in our accounts. EURS is the most transparent solution on the market nowadays. When it comes to the successful development of stablecoin products, a rare combination of financial, legal, and technical expertise is a must-have. Malta-based STASIS has perfected its offering and continues to promote its initiative by developing the euro-backed stablecoin and the in-house wallet solution.
Why is transparency on the blockchain so important for STASIS?
The STASIS team carefully monitors the ongoing changes in regulatory frameworks development for cryptocurrency markets. We need to point out that our company isn't taking part in a crypto trading business and STASIS/EURS is exempt from regulation under Maltese laws and the VFA act. STASIS has received four legal opinions from Malta, the USA, the UK, Germany to confirm this position.
STASIS has successfully operated in a self-regulated form for more than three years, being the only big four-audited issuer and providing ultimate transparency of operations. Moreover, we have been promoting the E-money 2.0 initiative since the project’s inception. The STASIS team is pushing the new model to come to life, but there is no clear ETA for this milestone. Until a proper regulation is in place, we will continue to exist and operate in a self-regulatory mode.
Why are licensing, regulations, safety and security so important in the crypto world?
As a foundation, we focus on addressing what it perceives to be the primary bottleneck for stablecoin creation; an E-money 2.0 regulatory framework. Since its inception, our team has been working with regulatory bodies to help them develop blockchain regulations that reduce uncertainty for companies while protecting consumers and ecosystem stakeholders.
Who can benefit from EURS and why?
EURS was launched in June 2018 and has amassed over $100M in liquidity over three years in the cryptomarket. EURS team aligns itself with the top communities and teams in the space, including Chainlink with similar goals and strives for transparency. Moreover, EURS has been listed on the top DeFi protocols such as Uniswap, Curve, Yearn, Cream, Synthetix, and others.
EURS is currently used as a trust-minimized alternative to other stablecoins. The goal is to drive the adoption of EURS to be used as collateral in DeFi, money markets, other synthetic assets, and more. Since all EURS are backed with fiat euro, there is no risk for investors and everyday users, who can always exchange their digital assets thanks to the Sellback Service.
The decision to design EURS as it is today came from the strategy to achieve two main goals:
1. An alternative to USD-pegged assets
- Most transparent stablecoin on the market
- Balance sheet currency for EU citizens
- A preferable alternative to USD by Asian and Latin American populations
- Independent of USD inflationary monetary policy
- Avoids being targeted by dollar regulation such as the “Stable Act”.
2. Reserve asset for DeFi
- Interoperability product running on several blockchains to ensure better performance in DeFi with fewer fees
- More reliable than popular dollar-backed assets such as USDC & USDT
- A convenient solution to enter/exit the volatile crypto market for traders.
Give us 1 interesting fact about the brand or token that we might not know.
We planned a huge event dedicated to the EURS launch back in June 2018. We presented it at a big venue in the Chamber of Commerce, the center of Valletta, capital of Malta. Suddenly, several police cars stopped near the entrance. We had different ideas slipping through our heads, but it turned out to be a security detail for the president herself and the head of the local regulator, MFSA. We were pleased to see an interest from the political side, they even gave a speech so everything went really great.