Fintech firm, Monei has launched trials of the euro-backed stablecoin EURM in Spain in collaboration with major financial institutions in the country.
In a recent press release, the company announced the commencement of tests under the supervision of the Bank of Spain’s Financial Sandbox.
The tests are currently limited to a select number of users with a reduced margin for error as they explore pathways to the digitization of payment in compliance with regulations.
The tests will see participants send and receive EURM backed by the Euro which will be deposited in a Spanish financial institution.
“The project admitted to the regulatory sandbox, led by the General Secretariat of the Treasury and International Financing, has the Bank of Spain as its supervisory authority. Within the framework of this controlled testing space, a reduced sample of participants has been taken, with a minimized margin of error.”
According to the release, users can easily integrate the asset through their mobile phone number after verifying their identity through a video format KYC process.
EURM Stablecoin Backed 1:1
Currently, each user in the trial phase can deposit 10 Euros in the wallet through Bizum and send the assets to other registered users.
All euros deposited are backed 1:1 as there is always the same number of EURM as there are physical euros. Every euro deposited on the platform is stored in Spain’s financial institutions supervised by the Bank of Spain.
The Monei platform boasts several utilities including seamless and fast transactions in milliseconds to any user with a registered phone number.
The team added that monthly payments can be programmed into smaller fragments while salary payments can be structured according to employee preference.
Alex Saiz Verdaguer, the CEO of Monei views this as a huge leap towards digitalization of payments and the tests, an opportunity to scale current standards.
“EURM proposes an unprecedented innovation and we have in our hands the opportunity to make the management of collections and payments, and the sending of money more secure, programmable, economical, democratic, and liberalized than ever.”
Companies can also onboard wallets linked to the EURM to structure payments and other fees with little cost per transaction.
Spain began tests for a Central Bank Digital Currency (CBDC) in 2022 with collaboration from local financial institutions.
Studies into the project were meant to cover the movement of funds, use cases of wholesale CBDCs, and the liquidation of assets.
Meanwhile, the Bank of Spain has also backed research into a possible digital Euro to aid financial inclusion and cross-border payments. Highlighting key areas, the financial regulator stressed offline payments with the asset and privacy concerns that different models may pose.
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