A Spanish fintech firm, Monei has launched a groundbreaking trial for EURM, a euro-backed stablecoin, under the regulatory eye of the Bank of Spain. The trial, initiated in January and operating within the regulatory sandbox, signifies a significant stride towards digitizing payments in Spain.
According to a statement posted on Monei’s website, the regulatory sandbox trial got underway in January. This is a component of the Controlled Testing Space of the Bank of Spain. In September 2023, one of the leading cryptocurrency exchanges, Coinbase took a significant step towards expanding its cryptocurrency services in Spain.
Stablecoin Trial Objectives and Mechanics
The primary aim of the EURM trial is to evaluate its transaction capabilities meticulously. A carefully selected group of individual users are partaking in the trial, undergoing identity verification, setting up wallets, and depositing 10 euros into their accounts, which are then exchanged for an equivalent amount of EURM.
Each unit of EURM is securely backed by the euro on a 1:1 basis and stored in reputable Spanish banks like BBVA and Caixabank which developed the internet version of a digital euro prototype.
Implications for Digital Payments
Alex Saiz Verdaguer, CEO of Monei, views the trial as a pivotal step towards revolutionizing payments. He also emphasized the enhanced security, programmability, cost-effectiveness, and accessibility that EURM offers over traditional methods.
The stablecoin aims to facilitate instantaneous, low-fee transactions via mobile phones, with potential applications ranging from corporate payments to real-time bonuses. Moreover, the potential adoption of EURM by the Bank of Spain lends credence to it and aligns with the broader trend of central banks exploring digital currency solutions.
The initiative coincides with separate testing efforts announced by the Bank of Spain in collaboration with key financial institutions and blockchain firms including Cecabank, Abanca and Adhara Blockchain.
However, it’s crucial to distinguish between the Spanish CBDC program and the digital euro project, which seeks to encompass the entire eurozone economy.
Furthermore, the Spanish Ministry of Economic Affairs and Digital Transformation has adopted a proactive stance on it. The plan to implement EU regulations ahead of schedule also reflects Spain’s commitment to fostering innovation while ensuring regulatory compliance in the rapidly evolving fintech ecosystem.