The Bank of Spain has given the green light for a pilot run of a euro-backed stablecoin by payments fintech Monei.
The euro-pegged digital token, EURM, has emerged from the Bank of Spain's digital sandbox for testing innovative new propositions. EURM facilitates the Europe-wide sending of euros and online payments by creating a token using Ethereum and Polygon Blockchain technology.
In the test phase, the user enters their phone number, verifies their identity through video identification, and loads their wallet with real euros via Spanish instant payments service Bizum. Automatically, the same amount of EURM is created as the number of real euros deposited by the user and they can send EURM to the other registered users.
Each token will represent one physical euro, the total of which will be held in two safekeeping accounts at leading Spanish financial institutions such as BBVA and Caixabank.
Álex Saiz Verdaguer, CEO and founder of Monei, states: "Tthe future of payments is digital. This is our opportunity to show the rest of Europe and the world that we are at the forefront. EURM is the ultimate pan-European solution that will allow citizens and businesses across the continent to send and receive money instantly."