MONEI Trials Euro-backed Stablecoin EURM Under Bank of Spain Supervision
Summary:
Spanish fintech company MONEI has initiated a trial for EURM, a euro-backed stablecoin, under the Bank of Spain's supervision. The trial aims to assess EURM's transactional capabilities, with each unit backed one-to-one by euros held at Spanish banks. The stablecoin infrastructure offers various business solutions like real-time payment of monthly or daily wages or productivity rewards. Spain's central bank announced its wholesale central bank digital currency (CBDC) program in 2022, hinting at the possibility of EURM becoming the preferred technology.
Under the oversight of Spain's central bank, MONEI, a Spanish-based fintech company, has begun the pilot test for the euro-based stablecoin EURM. The information, released on MONEI's website on January 29th, indicates that the trial got underway within the structured regulatory setting in January with a selected group of individuals, small enough to ensure error minimization. This test aims to assess EURM's transactional performance where users validate their identities, upload their wallets, deposit up to 10 euros on their accounts, and convert them into 10 EURM. Each EURM is equivalently supported by euro on a 1:1 ratio and held in Spanish financial institutions, including BBVA and Caixabank.
MONEI's Chief Executive Officer, Alex Saiz Verdaguer, views the pilot test as "a stride towards fully digitizing payments." He believes this new stablecoin can offer a safer, programmable, cost-effective, and highly liberalized platform to transfer money. The report suggests that EURM will drastically speed up transactions between any two mobile phone users to "milliseconds" while charging a fraction of a euro per transaction. Additionally, EURM's infrastructure offers various business solutions like in-real-time payment of employees' monthly or daily wages or productivity bonuses based on robotic guidance.
Spain's central bank had announced its own wholesale central bank digital currency (CBDC) program back in 2022. Although MONEI's Verdaguer alluded that EURM might be the favored technology for the Bank of Spain, in January 2024, the bank began separate testing in alliance with Cecabank, Abanca, and Adhara Blockchain.
The Spanish CBDC program, pronouncedly independent of the digital euro project, stands out. If activated, the digital euro would encapsulate all economies within the eurozone. Additionally, the Spanish Ministry of Economic Affairs and Digital Transformation declared it would execute the European Union's Markets in Crypto-Assets Regulation half a year before the deadline.
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Published At
2/2/2024 1:29:24 PM
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