Spain Embarks on Trials for Euro-Backed Stablecoin Integration

Crypto News– Spanish fintech firm Monei has initiated trials of a euro-backed stablecoin EURM, under the supervision of the Bank of Spain.

Spain Embarks on Trials for Euro-Backed Stablecoin Integration

According to an announcement posted on Monei’s website on January 29, the trial within the regulatory sandbox commenced in January. It involves a select group of individual users, carefully limited to minimize the margin of error.

The trial aims to assess EURM’s transaction capabilities. Each participant will undergo identity verification, set up a wallet, deposit 10 euros into their account, and exchange it for an equivalent amount of 10 EURM. Notably, each EURM is backed 1:1 by the euro currency and securely stored in Spanish banks, including BBVA and Caixabank.

CEO of Monei, Alex Saiz Verdaguer, hailed the trial as “another step on our path toward the complete digitalization of payments.” He anticipates that the new stablecoin will offer a more secure, programmable, cost-effective, democratic, and liberalized means of sending money. As per the announcement, EURM is poised to facilitate near-instantaneous transactions between individuals with access to a mobile phone, with transaction fees amounting to mere “thousandths of a euro per transaction.” Furthermore, the stablecoin’s infrastructure includes various corporate applications, such as monthly or daily employee payments, and real-time productivity bonuses based on automated instructions.

In parallel, the Bank of Spain had previously announced the initiation of its own wholesale central bank digital currency (CBDC) program in 2022. Verdaguer hinted at the possibility of EURM becoming the preferred technology of the Bank of Spain. In January 2024, the Bank of Spain disclosed separate testing endeavors in collaboration with Cecabank, Abanca, and Adhara Blockchain.

The Spanish CBDC program stands out for its distinctiveness, being explicitly declared independent of the digital euro project, which, if realized, would encompass all economies within the eurozone. Meanwhile, the Spanish Ministry of Economic Affairs and Digital Transformation declared its intent to adopt the European Union’s Markets in Crypto-Assets Regulation six months ahead of schedule.