Spanish fintech company Monei has begun testing EURM, a euro-backed stablecoin, under the regulatory oversight of the Bank of Spain. These trials began in January with a select group of individual users to minimize errors, according to an official announcement posted on Monei’s website on January 29.
The main focus of the test is to evaluate the trading capabilities of EURM, a stablecoin backed 1:1 by the euro and held by Spanish banks including BBVA and Caixabank. Users participating in the trial must verify their identity, upload a wallet, deposit 10 EUR into their account and exchange it for the EURM equivalent.
Monei CEO Alex Saiz Verdaguer sees the trial as an important step towards full digitalization of payment methods. He expects stablecoins to provide a more secure, programmable, cost-effective, democratic and liberalized approach to transferring funds.
EURM is expected to facilitate almost instantaneous transactions between two individuals with access to a mobile phone. Transaction fees will also be minimal, amounting to only “a few thousandths of a euro per transaction.” Stablecoin’s infrastructure also supports a variety of enterprise use cases, including real-time monthly or daily employee payments and productivity bonuses based on automated instructions.
The Bank of Spain has launched its Central Bank Digital Currency Wholesale (CBDC) program in 2022. Verdaguer hinted at the possibility of EURM becoming the preferred technology for Spanish banks. In January 2024, the Spanish bank announced a separate test in collaboration with Cecabank, Abanca, and Adhara Blockchain.
It is worth noting that the Spanish CBDC program differs from the Digital Euro project because it is publicly stated that it is independent and not tied to the Digital Euro, which covers all eurozone economies. Meanwhile, Spain’s Ministry of Economy and Digital Transformation announced its intention to implement EU cryptocurrency market regulations six months ahead of the deadline.
The piloting of the EURM and the broader development of the Spanish digital currency environment are important steps toward embracing innovative financial technologies in Spain.