In a significant move towards financial innovation, Monei, a Spanish fintech company, has initiated trials for a new euro-backed stablecoin, named EURM, with oversight from the Bank of Spain. This trial, set in motion in January within a regulatory sandbox, marks a crucial step in exploring the potential of digital currencies in the country. A select group of individual users is participating in this pilot to ensure a focused and error-minimized evaluation of EURM’s functionality.
The trial’s core objective is to test the transactional capabilities of EURM. Participants are required to undergo a verification process, set up a digital wallet, and then exchange 10 euros for an equivalent amount of EURM. This innovative stablecoin is pegged on a 1:1 basis with the euro and is securely stored in prominent Spanish banks, including BBVA and Caixabank.
Alex Saiz Verdaguer, the CEO of Monei, views this trial as a pivotal moment towards achieving the full digitalization of payment systems. He envisions EURM as a means to make financial transactions not only faster and more cost-effective but also more secure and inclusive, leveraging the stability of the euro.
EURM promises to revolutionize how transactions are conducted, offering near-instant transfers between individuals via mobile phones for minimal fees. Moreover, it introduces versatile corporate functionalities, such as real-time payment of wages or bonuses based on automated instructions, potentially transforming the landscape of employee remuneration.
This trial comes in the wake of the Bank of Spain’s announcement in 2022 about exploring a wholesale central bank digital currency (CBDC), indicating a broader interest in digital finance solutions. The EURM could potentially align with the Bank of Spain’s technology preferences for future digital currency implementations.
Simultaneously, Spain is positioning itself as a leader in digital finance regulation within the European Union, with plans to adopt the Markets in Crypto-Assets Regulation ahead of schedule. This initiative underscores Spain’s commitment to fostering a secure and innovative digital economy, distinguishing its approach from the broader digital euro project aimed at encompassing the entire eurozone.