The Bank of Spain has approved the launch of a pilot program involving the issuance and use of euro-pegged stabled coins. The program, to be launched by fintech institution MONEI, will allow users to issue digital euros with their fiat deposits and experiment with these in payment applications to increase transparency.
Bank of Spain Allows Testing of Digital Euro Tokens
Europe is becoming a hotspot for stablecoin and CBDC (Central Bank Digital Currency) experimentation On January 19, the Bank of Spain approved the issuance of euro-pegged digital tokens including approved a pilot program. Led by regulated fintech payments company MONEI, the project will allow users to issue their own euro-stable coins for a variety of purposes.
Using Ethereum and Polygon blockchain technology, eurm tokens will be issued with deposits coming from users, and each token will be backed by actual euros.The test, inscribed as part of Sain Bank’s Financial Sandbox action, will be conducted on MONEI’s only allows the issuance of up to 10 eurm by each user registered on the platform.
With 57 million phone lines in Spain, the test allows for the issuance of up to 570 million eurm. These funds will be held in two accounts at two financial institutions, BBVA and Caixabank, both managed by MONEI.
Digital Euro Use Case
As part of its efforts to modernize payments in the Eurozone, MONEI has introduced the Digital Euro Stable Coin to speed up payments and reduce operational costs associated with payments. In this regard, Alex Saiz Verdaguer, CEO and founder of MONEI, stated.
The future of payments is digital. This is our chance to show the rest of Europe and the world that we are at the forefront, and Eurm is the ultimate pan-European solution that will allow citizens and businesses across the continent to send and receive instantly.
MONEI aims for this stablecoin project to be approved by the regulator after this test, and will work on automatic and recurring payments that benefit from programmable Fiat equivalent coins. For example, firms could program payments to providers based on sales performed on any given day, or allow workers to program their benefit payments automatically on a daily, weekly, or monthly basis.
The project is a private initiative and is not related to the Digital Euro initiative led by the European Central Bank, which is currently still in the study phase to decide whether to issue it.
Image credit: Shutterstock, Pixabay, Wiki Commons
As part of its efforts to modernize payments in the Eurozone, MONEI has introduced the Digital Euro Stable Coin to speed up payments and reduce operational costs associated with payments. In this regard, Alex Saiz Verdaguer, CEO and founder of MONEI, stated.
The future of payments is digital. This is our chance to show the rest of Europe and the world that we are at the forefront, and Eurm is the ultimate pan-European solution that will allow citizens and businesses across the continent to send and receive instantly.
MONEI aims for this stablecoin project to be approved by the regulator after this test, and will work on automatic and recurring payments that benefit from programmable Fiat equivalent coins. For example, firms could program payments to providers based on sales performed on any given day, or allow workers to program their benefit payments automatically on a daily, weekly, or monthly basis.
The project is a private initiative and is not related to the Digital Euro initiative led by the European Central Bank, which is currently still in the study phase to decide whether to issue it.
Image credit: Shutterstock, Pixabay, Wiki Commons