Quantoz Payments Secures License to Issue EURD
A subsidiary of Dutch blockchain firm Quantoz, Quantoz Payments, has obtained a license as an electronic money institution (EMI) under the supervision of the Dutch Central Bank. This authorization enables Quantoz Payments to issue its first regulated and programmable euro legal tender, EURD, on the Algorand network.
Launching EURD on the Algorand Blockchain
Expected by the end of the year, EURD and its associated e-money services are set to become available to businesses and consumers across the European Economic Area, regardless of whether they have a traditional bank account. The introduction of EURD opens up possibilities for payments to internet-connected device avatars and plays a crucial role in facilitating the Web3 economy. It also makes microtransactions economically viable, enabling scenarios such as compensating sensors for data and facilitating machine-to-machine transactions.
EURD offers a range of features including strong privacy measures, coverage of transaction fees, and the ability to program money for enhanced efficiency and cost-effectiveness. Quantoz co-founder and CTO Gaston Hendriks emphasized Algorand’s suitability for issuing regulated digital euros on a public blockchain, highlighting the platform’s capacity to issue all euros circulating on Algorand and process thousands of transactions per second instantly.
Developers interested in integrating EURD into their applications can use Quantoz’s APIs or their open-sourced payment app without needing extensive blockchain expertise.
Eric Wragge, Global Head of Business Development at the Algorand Foundation, congratulated the Quantoz team for achieving this significant milestone. He expressed excitement about collaborating with Quantoz on use-case development and product rollout.
The Unique Nature of EURD
The announcement clarified that EURD is not a cryptocurrency or a stablecoin; rather, it is an electronic money token (EMT), distinctly different from central bank digital currencies (CBDCs). This distinction positions EURD within a specific category in the digital currency landscape.
Furthermore, EURD is carefully designed to adhere to the Markets in Crypto Assets Regulation (MiCAR), ensuring full compliance with regulations governing the issuance of electronic money tokens on distributed ledgers. This commitment underscores the responsible and legally sound approach taken by Quantoz in introducing EURD to the market.
Hot Take
Quantoz Payments has secured a license as an electronic money institution (EMI) under the supervision of the Dutch Central Bank, allowing them to issue their inaugural regulated euro legal tender, EURD, on the Algorand network. The introduction of EURD is set to revolutionize payments in Europe by making microtransactions economically viable and opening up possibilities for payments to internet-connected device avatars. This move also showcases Algorand’s capacity for issuing regulated digital euros on a public blockchain while maintaining compliance with regulations governing electronic money tokens on distributed ledgers.
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