The introduction of EURR represents a major step in bridging traditional finance and blockchain. It gives users across Europe access to a stable digital Euro that can be used for daily payments, online transactions, and international remittances. For businesses, EURR creates opportunities for faster, cheaper cross-border transactions, while for consumers, it ensures transparency and trust thanks to MiCA compliance.

EURR works like other fiat-backed stablecoins. Euros are deposited with regulated custodians, and an equivalent amount of EURR tokens are issued on the blockchain. When EURR is redeemed, the tokens are burned and the equivalent Euros are released back to the user. This mechanism ensures that every EURR in circulation is backed by real-world reserves.

While EURR is backed by reserves and regulated under MiCA, risks still exist. Regulatory changes could affect how EURR is issued or redeemed. There are also banking dependencies, since the stability of EURR relies on the financial institutions holding its reserves. Finally, adoption risks remain, as EURR competes with other Euro stablecoins and potential digital Euro initiatives from central banks.