FAQs

Stablecoins: Built on blockchains, which are decentralized and transparent ledgers. This allows faster transactions and potentially greater privacy, but also carries risks like volatility and lack of regulation. E-money: Issued by centralized institutions like banks or payment companies. Their operation is generally transparent to users, but may be less so compared to blockchains. ​ es-Currencies: Built on blockchains, and therefore decentralized with transparent ledgers. Fast transactions with no volatility risk. Issued by regulated institutions and therefore it is strong in regulation and a guaranteed for the holder.

Stablecoins: Aim to maintain a stable price, often pegged to a fiat currency like USD or EUR. This is achieved through various mechanisms like reserve backing (holding fiat or assets), algorithmic adjustments, or seigniorage shares. However, they haven't always been successful in maintaining complete stability. E-money: Directly backed by fiat currency held by the issuer. This ensures instant redeemability at face value, but limits innovation and earning potential. ​ es-Currencies: Obliged by regulation to maintain a stable price and 100% pegged to a fiat currency achieved through reserve backing (100% holding fiat). The complete stability is ensured by safeguarded account constantly ring-fenced and audited.

Stablecoins: Still largely unregulated, creating uncertainty and potential risks. Regulations are being developed, but vary by jurisdiction. ​ E-money: Subject to stricter regulations like the Electronic Money Directive (EMD) in Europe, ensuring consumer protection and compliance with anti-money laundering (AML) rules. ​ es-Currencies: Same structure than E-Money. The issuing financial institutions are based in premium countries like Europe, United Kingdom, Switzerland, New Zealand and United States, ensuring consumer protection and compliance with anti-money laundering (AML) rules.

Stablecoins: Can be used for payments and crypto exchanges, but also integrated with DeFi applications like lending, borrowing, and yield farming. However, these activities may carry additional risks. E-money: Primarily focused on payments and basic financial services like money transfers and bill payments. Limited in their ability to interact with other platforms and applications due to their centralized nature. ​ es-Currencies: Primarily focused on payments but also integrable with DeFi protocols, smart contracts and therefore fully programmable, enabling innovative financial applications. Uniquely, es-Currencies can be streamable and thus be programmed for a continuous flow that can be managed by a number of variables.

Stablecoins: Offer potential for innovation and higher returns, but come with greater risk and regulatory uncertainty. ​ E-money: Provides stability and security, but with limited functionality and potential for lower returns. ​ es-Currencies: Offer potential for innovation, provides stability and security within a strong regulatory framework. Check the comparison table: USDT vs FSUSD vs es-USD