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Alex Saiz Verdaguer, Bank of Spain, Blockchain, digital euro, Ethereum, EURM, Euro, European Central Bank, MONEI, Payments, Polygon, Stablecoin
Bank of Spain Greenlights Euro-Backed Stablecoin Token Pilot Program – Fintech Bitcoin News
The Bank of Spain has given approval for the launch of a pilot program involving the issuance and use of euro-pegged stablecoins. The program, launched by MONEI, a fintech institution, will allow users to issue digital euros with fiat deposits to experiment with these in payment applications, increasing their transparency.
Bank of Spain authorizes digital eurotoken tests
Europe is becoming a hotspot for experimentation with stablecoins and CBDC (central bank digital currency). On January 19, the Bank of Spain gave the green light to a pilot program involving the issuance of euro-pegged digital tokens. The project, led by MONEI, a regulated fintech payments company, will allow users to issue their own euro stablecoins for various purposes.
Using Ethereum and Polygon blockchain technology, the eurm token will be issued with deposits coming from users, and each token will be backed by real euros. The test, inscribed as part of the actions in the financial sandbox of the bank of Sain, only allows the issuance of a maximum of ten eurms by each user registered on MONEI’s platform.
The test includes issuing up to 570 million eurms because Spain has 57 million telephone lines subscribed to. These funds will be held in two accounts in two financial institutions, BBVA and Caixabank, managed by MONEI.
Digital Euro Use Cases
MONEI profiles its digital euro stablecoin as part of the modernization of payments in the Eurozone, increasing the speed of payments while reducing the operational costs associated with them. About this, MONEI CEO and founder Alex Saiz Verdaguer stated:
The future of payments is digital. This is our chance to show the rest of Europe and the world that we are ahead of the curve. Eurm is the ultimate pan-European solution that allows citizens and businesses on the continent to send and receive money instantly.
MONEI aims for this stablecoin project to be approved by regulators after this test, to tackle automatic and periodic payments that will benefit from programmable fiat-equivalent money. As an example, a company can schedule payments to vendors based on the sales made on a given day, or have workers schedule their allowance payments on a daily, weekly, or monthly basis automatically.
This project is a private-led initiative and has no relation to the digital euro initiative led by the European Central Bank, which is currently still in its investigative phases to decide whether to issue it.
What do you think about the euro-pegged token project approved by the Bank of Spain? Tell us in the comments section below.
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