Spanish fintech company Monei has initiated a pilot program for a new euro-backed stablecoin, EURM, under the oversight of the Bank of Spain. This development, announced on January 29 on Monei’s official website, marks a significant step towards integrating digital currency solutions within the regulatory framework of Spain’s financial system.
The trial, which commenced in January, is being conducted within the confines of a regulatory sandbox designed to foster innovation while ensuring consumer protection and financial stability. The sandbox approach allows for a controlled environment where a select group of individual users can participate in the trial, thereby reducing the potential for errors.
Participants in the trial are required to undergo an identity verification process, after which they can deposit 10 euros into their accounts. This deposit is then exchanged for an equivalent amount of EURM, with each unit of the stablecoin being backed 1:1 by euros held in reputable Spanish banks, including BBVA and Caixabank.
Alex Saiz Verdaguer, CEO of Monei, highlighted the trial as a pivotal move towards the full digitalization of payment systems. He envisions the EURM stablecoin as offering a more secure, efficient, and cost-effective method of conducting transactions. The stablecoin aims to enable instant transfers between any two individuals owning a mobile phone, with transaction fees being minimal.
Moreover, the infrastructure supporting EURM is designed to accommodate various corporate functionalities, such as the ability to process payroll and productivity bonuses in real-time, guided by automated instructions.
The trial of EURM coincides with the Bank of Spain’s exploration of a wholesale central bank digital currency (CBDC) program, launched in 2022. Verdaguer hinted at the potential for EURM to become a preferred technology for the Bank of Spain, aligning with the broader objectives of the Spanish CBDC program. This program is notably distinct from the digital euro project, which aims to introduce a digital currency across the entire eurozone.
In addition to these developments, the Spanish Ministry of Economic Affairs and Digital Transformation has committed to implementing the European Union’s Markets in Crypto-Assets (MiCA) Regulation ahead of its deadline, demonstrating Spain’s proactive stance on crypto regulation and digital currency innovation.
This series of initiatives underscores Spain’s ambition to lead in the digital currency space, balancing innovation with regulatory oversight to ensure a secure and efficient financial ecosystem.
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