For some time now, I’ve been thinking about this, and I’ve decided to share it with you today to hear your opinions. If this topic has already been raised somewhere, I’d appreciate a link to it, but if not, I invite you to join the discussion.
I have the impression that Polkadot, despite building fantastic infrastructure, is usually 2-3 steps behind the market when it comes to implementing the latest trends and exploring niches. Hence my suggestion that we should consider onboarding EURC as soon as possible.
Why?
It will be difficult for us to compete in terms of market share and liquidity for USD stablecoins with the leading protocols. In the case of EURC, there was a great opportunity last year to become a leading protocol—since August, its market cap has been growing dynamically, but even a range of 5-10 million would position us as a significant player and strengthen our standing (ca. 106m total market as of today across Ethereum, Solana, Base, Avalanche and Stellar).
The main advantages I see:
-
Leveraging the strong foundations we have in Europe
-
A natural pair with high volume potential (EUR/USD)
-
Treasury diversification (Euro-denominated expenses could be funded directly, though imo initially the primary goal should be to build reserves and provide liquidity on which the treasury could additionally earn)
-
A key factor in convincing the largest exchanges operating in Europe to integrate Asset Hub
I don’t want to ramble on too long because I think the advantages of this solution are natural and obvious. I’ll just add that if a significant CHF stablecoin emerges, we should try to be among the first and leading protocols this time.
I’d love to hear your thoughts—maybe there’s something I’m overlooking. Thanks!