e-Euro vs. IOTA token

This article is a translation of the German IOTA Beginner’s Guide by Schmucklos.

Could an e-Euro replace the IOTA Token?

The e-Euro considered by the European Commission will not be a communication protocol. It will be a 1:1 backed stablecoin that can be used on different platforms if necessary. In my opinion, an own Euro-Chain or something similar would not make much sense in our globally connected world. What would be the advantages?

The marketplaces will be international and therefore require a cross-country and cross-company medium of exchange, especially for micro-transactions. As I have often described, in my opinion the user will not even notice that he pays with IOTA tokens in the future. All transactions including autonomous conversions into different national currencies will run in the background and in almost real time.

If you want to implement cross-country and cross-company processes, trade or logistics between machines, these transactions can take place without much delay and without having to agree on a trading currency etc. The only requirement is that machines have direct access to a stock exchange either directly or through a financial service provider to make conversions. This could be, for example, the house bank of a company, which keeps the fiat accounts anyway and if the bank earns a small margin for this autonomous conversion order, this is perfectly fine. A machine could autonomously submit a conversion order to the bank at any time and then have its IOTA tokens available to send them across the national border. In this case, the higher volatility is completely neglected and a machine would not have to keep tokens in its wallet permanently.

> IOTA is an open, free of charge, decentralized and ultra-fast clearing system!

I can imagine the Euro and other fiat currencies as additional stablecoins on the Tangle, which could store the respective fiat-values over a longer period of time.

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Last Updated on 16. February 2021