What Is a Stablecoin?
A stablecoin is a type of cryptocurrency whose value is linked directly to a real-world asset, most commonly a fiat currency such as the euro, British pound, or US dollar.
Stablecoins are designed to combine the efficiency and accessibility of blockchain technology with the price stability of traditional money.
Key characteristics of stablecoins include:
Price Stability
Stablecoins are structured to maintain a fixed exchange rate, typically at a 1:1 ratio with the underlying fiat currency. For example, one euro-backed stablecoin is intended to remain equal in value to one euro.
Fiat Reserve Backing
Each issued stablecoin is supported by corresponding fiat reserves or equivalent safeguarded assets held by regulated financial institutions. This reserve structure is intended to ensure redeemability and maintain confidence in the token’s value.
Practical Use for Payments
Because their value remains relatively stable, stablecoins are widely used for payments, transfers, settlements, and everyday spending without the volatility commonly associated with other digital assets.
Which Stablecoins Are Supported by Gnosis App?
Depending on your jurisdiction, your Gnosis App Safe may use one of the following regulated stablecoins:
🇪🇺 EURe – The Digital Euro
EURe is a regulated stablecoin pegged 1:1 to the euro (€).
It is primarily used by cardholders located within the European Union, the European Economic Area (EEA), and Switzerland.
The token is issued by Monerium, a licensed Electronic Money Institution operating within Europe. EURe is fully backed by safeguarded euro-denominated reserves held in accordance with applicable regulatory requirements.
🇬🇧 GBPe – The Digital Pound
GBPe is a stablecoin pegged 1:1 to the British pound sterling (£).
It is generally used by Gnosis App cardholders located in the United Kingdom and Gibraltar.
Like EURe, GBPe is issued by Monerium and supported by safeguarded GBP reserves and high-quality liquid assets maintained under regulatory supervision.
🇺🇸 USDCe – The Digital Dollar on Gnosis Chain
USDCe is a version of USDC designed for use on Gnosis Chain and pegged 1:1 to the US dollar ($).
It is commonly used for cardholders in selected regions, including Brazil and other supported jurisdictions.
The underlying USDC reserves are issued and managed by Circle, a regulated financial technology company.
The “.e” designation indicates that the token has been securely bridged from the Ethereum network to Gnosis Chain, allowing users to benefit from lower transaction costs and improved network efficiency while maintaining backing by real US dollar reserves.
Why Does Gnosis App Use Regulated Stablecoins?
Gnosis App uses regulated stablecoins such as EURe, GBPe, and USDCe to provide a secure and predictable payment experience for both users and merchants.Key benefits include:
Stable Transaction Value
Stablecoins are designed to maintain a consistent value, reducing exposure to sudden market fluctuations. Unlike many traditional cryptocurrencies, regulated stablecoins aim to preserve price stability, making them more suitable for everyday financial activity.
Regulatory Oversight and Reserve Transparency
The supported stablecoins are issued by regulated financial institutions and backed by safeguarded reserves, helping ensure greater reliability and compliance with applicable financial regulations.
Efficient Blockchain-Based Payments
Stablecoins combine fiat-like stability with the speed, accessibility, and programmability of blockchain technology, enabling seamless digital payments across supported networks.