With this new development, Quantoz Payments and Algorand have launched one of the first digital assets capable of making tokenized deposits that are compatible with European Union regulations.
Quantoz Payments, in a groundbreaking move, has been licensed by the Dutch Central Bank to issue EURD, a regulated digital euro, on the Algorand network, ushering in a new era of financial innovation and efficiency. EURD is neither a cryptocurrency nor a stablecoin, but rather a regulatory-compliant e-money token designed to facilitate payments to internet-connected devices and microtransactions within the European Economic Area. This development positions Quantoz Payments as the leading provider of digital currency for the global economy. Quantoz Payments at the forefront of the emerging landscape of tokenization and digital currency transactions.
La EURD issuance on the Algorand network will revolutionize the financial landscape by offering features such as strong privacy, transaction fee coverage, and programmable money. Algorand's capacity and instant finality make it an ideal platform for issuing and processing regulated digital euros at scale, thereby improving financial efficiency and unlocking new business models. Additionally, it is worth noting that EURD is designed to be fully compliant Cryptoasset Markets Regulation (MiCAR), which has brought comprehensive regulation to the issuance of electronic money tokens on distributed ledgers.
The collaboration between Quantoz Payments and Algorand marks a significant milestone in the field of digital currencies and blockchain technology. The Algorand Foundation has commended Quantoz Payments for achieving this critical milestone and looks forward to collaborating on developing use cases, underlining the potential for further innovation and integration of EURD within the broader financial ecosystem.
In this regard, Eric Wragge, Global Director of Business Development at the Algorand Foundation, commented:
The Quantoz team combines a deep technical background with a wealth of payments experience and we congratulate them on achieving this important milestone. We are pleased that a leading regulator in the heart of Europe has authorized the issuance of digital euros on Algorand and look forward to working with Quantoz on developing use cases and launching products.
Quantoz Payments and a new way of looking at the digital euro
The introduction of EURD on the Algorand network holds immense promise for businesses and consumers, offering a seamless and secure means of transacting while ensuring compliance with regulatory standards. This initiative not only marks a leap forward in the evolution of digital euros, but also represents a paradigm shift in the way financial transactions are conducted, paving the way for greater financial inclusion and technological advancements.
In fact, Quantoz Payments expects that by the end of this year, EURD and e-money services will be available to all businesses and consumers within the European Economic Area, regardless of whether they have a traditional bank account. EURD opens the door to payments to internet-connected devices and avatars and plays a pivotal role in enabling the Web3 economy. With EURD, microtransactions become economically viable, enabling scenarios such as sensor payment for data, machine-to-machine (M2M) transactions, and more.
In light of these developments, Gaston Hendriks, co-founder and CTO of Quantoz, commented:
Following an extensive technical review and due diligence process, Algorand has met all the requirements to issue regulated digital euros on a public blockchain. From a capacity perspective, we can issue all euros currently in circulation on Algorand and process thousands of transactions per second, with instant finality.
Likewise, he states that “Developers interested in integrating EURD into their applications can leverage our APIs or use our open-source payment application, without requiring in-depth blockchain knowledge”. This makes it clear that Quantoz Payments seeks to expand the reach of EURD and provide all the necessary tools for its adoption.
Algorand as the epicenter of tokenized deposits
In recent years, Algorand Algorand has become the epicenter of tokenized deposits, revolutionizing the way assets are tokenized and deposited, as well as their control by the different financial actors interested in this technology. With its main features that facilitate the tokenization, transfer and programming of conditions in any valuable instrument, Algorand has become a leading platform for the tokenization of assets at the enterprise level.
One of the key benefits of employing Algorand for asset tokenization is its efficient and scalable transaction processing, allowing for faster transactions and lower fees compared to other platforms. Additionally, Algorand’s commitment to environmental sustainability has positioned it as a green and efficient blockchain, achieving carbon-negative status since April 2021, incentivizing businesses to adopt its technology in order to meet ESG (Environmental, Social and Governance) criteria. This environmentally conscious approach has resonated with users and businesses, further driving the adoption of Algorand for asset and deposit tokenization.
In short, Algorand has emerged as the epicenter of tokenized deposits due to its innovative features, efficient consensus mechanism, and commitment to sustainability, making it the ideal choice for asset tokenization and deposits. As the platform continues to evolve and expand, it is poised to shape the future of decentralized finance and asset management.
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