Anchored Euro (AEUR) – stablecoin backed in euro

Kryptowaluta Anchored Euro (AEUR) was established in 2022. And since there have been practically no doubts related to it so far, it is worth considering whether the stability of digital transactions and an easy transition from tokens to traditional money in a period of high volatility on the crypto market should be carried out to stablecoina secured in euro. Especially since we are much closer to it than to other stablecoins, most of which are quoted in US dollars.

We continue the series of the Forex Club portal, in which we analyze and describe the largest, highest valued, most interesting, most developed, advanced, and most controversial cryptocurrency projects around the world. Today it's time for a stablecoin, which is quoted in euro and plays the most important role of big money: it is completely silent, at least in terms of scandals related to its operation.

What is Anchored Euro

Anchored Euro (AEUR) was founded in 2022 by Anchored Coins, which is a Swiss issuer dedicated to providing stability and liquidity to the cryptocurrency market. The equivalent of the euro currency is also to be the token that ensures operation in accordance with European regulations. Several predecessors of AEUR were liquidated precisely due to the unclear regulatory situation. AEUR, however, is fully aligned with the European Union's regulations on crypto-assets markets (MiCA).

As is the rule of all stablecoins, Anchored Euro is too provides an exchange rate to the euro at a parity of 1:1 – i.e. 1 AEUR token should always be worth 1 euro. This allows you to easily connect the cryptocurrency market with traditional finance, without exchange rate risk.

What are the advantages of AEUR?

On the cryptocurrency market, most cryptocurrencies are secured in dollars. We have USDT, USDC and others like that. AEUR is secured in euro, so it is immune to any turbulence related to the US economy or fluctuations in the price of the US dollar.

Thanks to AEUR, you can also simplify transactions within Europe, bypassing the inefficient and expensive system SWIFTon which traditional banks rely.

At the same time, this is not any circumvention of the law, because this stablecoin is fully compliant with European regulations. Moreover, based on the solutions developed in this project, the aim is to legalize the use of other cryptocurrencies and blockchain technologies throughout Europe.

The AEUR cryptocurrency operates not only on one market. Thanks to the fact that it already functions on both the BNB Chain and the network Ethereum, you can also easily make traditional purchases using it.

What are the threats facing stablecoins?

However, it is important to remember that stablecoins also pose risks. Despite parity, which is the guiding principle of stablecoins, it is not always possible to maintain it. During periods of extreme volatility, price deviations may occur due to temporary lack of liquidity. If someone has to execute a trade when this happens, they will be exposed to a slightly larger loss (the loss of parity is usually negligible).

However, in the entire history of AEUR quotations, there was a moment when the price of the stablecoin significantly deviated from parity. On December 5, 2023, you had to pay… as much as 2 euros for each AEUR. However, this was the only day, or rather a short moment, when the price of this stablecoin deviated so much from the valuation of the traditional currency. After arbitration, however, it quickly returned to parity.