Schumann Financial challenges dollar hegemony with 'Euro Stablecoin' [Cointerview]

Interview with Eduardo Morrison, Founder of Schumann Financial

Launch of euro-backed stablecoin 'EURØP'

Aiming to become a legal means of payment within the EU

Targeting demand for overseas remittances... Will expand to Web2

The key to Korean won stablecoin is securing circulation volume

"Currently, the stablecoin (a virtual asset pegged to a fiat currency) market is dominated by the dollar. However, the euro will be a major pillar in the upcoming digital currency wars."

Eduardo Morrison, founder of Schumann Financial, explained the background of issuing a euro-based stablecoin in an interview with Bloomingbit on the 18th.

Morrison is a virtual asset specialist with experience at major Web3 companies such as the on-chain analytics firm IntoTheBlock and the world’s largest crypto exchange Binance. Building on this experience, he founded Schumann Financial last year.

Schumann Financial is a project that issues the euro-pegged stablecoin 'EURØP' at a 1-to-1 ratio with the euro. It is backed by cash and cash equivalents deposited in major European banks, including Société Générale (SG).

"Preparing for global digital currency wars... Demand for the euro will rise"

Morrison explained that the biggest reason for issuing a euro-based stablecoin was to "prepare for the global digital currency wars."

He said, "The traditional financial market is already led by the dollar, and in digital finance, dollar-based stablecoins such as Tether (USDT) and USD Coin (USDC) hold sway. But as global assets become increasingly digitized, there will also be clear demand for euro-based stablecoins." Through 'EURØP,' he aims to lead the flow of the euro-based digital economy.

Currently, the stablecoin market is indeed dominated by the dollar. According to the cryptocurrency market data site CoinMarketCap, as of the 18th, the global stablecoin market capitalization totals approximately $256 billion (about ₩350 trillion), with dollar-based stablecoins like Tether (USDT, $155.5 billion) and USD Coin (USDC, $61.5 billion) accounting for over 95% of the total. Considering that the dollar accounts for about 59% of the worldwide reserve currency market, its influence is even more pronounced in the digital arena.

As a strategy to break the dollar’s dominance in the stablecoin market, Schumann Financial launched 'EURØP' on the XRP Ledger blockchain platform and provides cross-border remittance services using not only the dollar and euro but also the Brazilian Real.

Morrison said, "XRP Ledger was built from the start to maximize payment-focused use cases and transaction volume. Given these characteristics, it is the most suitable chain for expanding EURØP’s presence."

Additionally, 'EURØP' is providing liquidity to the real estate tokenization marketplace Propto to penetrate the stablecoin market. It has also been successively listed on European crypto exchanges including Kraken, Bitvavo, and Bitpanda. Morrison noted, "Listing EURØP on Bitstamp, Europe’s largest crypto exchange, is a short-term goal."

"Will become a legal means of payment in the EU’s real economy"

Morrison outlined his long-term goal of having 'EURØP' become a legal means of payment within the EU’s real economy.

To this end, he said, "We devoted considerable effort to complying with MiCA, the EU’s strict crypto regulation," adding, "To comply quickly, we acquired 'Salvus SAS,' a licensed company." He continued, "Through this acquisition, we obtained a license granted by the French financial regulator ACPR, allowing us to issue stablecoins throughout the entire EU market."

Real use cases are essential for stablecoins to establish themselves as recognized payment methods in the real economy. Morrison focused on cross-border remittance demands within the EU. He explained, "Schumann Financial is in the process of integrating with various remittance aggregation services and cross-border payment companies. Major target audiences include immigrants from French-speaking African countries and Brazilian corporations operating in Portugal."

He added, "If EURØP takes root in the overseas remittance market, it will serve as a case showing that on-chain payments can be linked to the real economy. Building on this, we plan to expand EURØP’s usage into Web2 payments as well."

"Korean won stablecoin can secure sufficient liquidity"

Morrison also shared a positive outlook on Korean won-based stablecoins. He said, "Concerns about a lack of demand for a Korean won stablecoin are unfounded, and stablecoins do not necessarily require reserve currency status."

He added, "It’s true that reserve-currency (US dollar) stablecoins like USDT or USDC have achieved overwhelming growth, but as long as regulatory compliance and a fiat base are maintained, there should be no issue acting as a bridge between digital assets and real-world currency." He further noted, "If integration with banks is realized, stablecoins could expand significantly."

He also advised that the key to the success of a won stablecoin is focusing on increasing its circulation volume. In particular, Morrison cited real-world use cases, converting assets serving as stablecoin collateral, and targeting overseas Korean residents as crucial factors for determining the success of a won stablecoin.

He said, "South Korea is already setting an example for crypto trading. If there are real use cases, it will greatly help secure initial circulation and liquidity for the won stablecoin." He continued, "Functions like collateral management and targeting Korean immigrants could create a positive feedback cycle that further increases liquidity."