The Bank of Spain has approved the launch of a pilot program for the issuance and use of stable currencies linked to the euro. The program, which is being launched by MONEI, a fintech entity, will allow users to issue digital euros with fiat deposits to experiment with them in payment applications, increasing their transparency.
Bank of Spain authorizes tests of digital euro token
Europe is becoming a hotspot for experimentation with stablecoins and CBDCs (central bank digital currency). On January 19, the Bank of Spain with green light a pilot program involving the issuance of euro-pegged digital tokens. The project, which is being spearheaded by MONEI, a regulated fintech payments firm, will allow users to issue their own euro stablecoins for different purposes.
Using the Ethereum and Polygon blockchain technology, the eurm token will be issued with deposits from users, and each token will be backed by real euros. The test, registered as part of the shares in the financial Sandbox of the Sain bank, only allows the issuance of a maximum of ten euros for each user registered on the MONEI platform.
The test includes the issuance of up to 570 million euros because Spain has 57 million subscribed telephone lines. These funds will be kept in two accounts in two financial institutions, BBVA and Caixabank, managed by MONEI.
Use cases of the digital euro
MONEI is shaping its digital stablecoin euro as part of its modernization of payments in the euro zone, increasing the speed of payments and reducing the operational costs related to them. In this regard, the CEO and founder of MONEI, 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 at the forefront. Eurm is the ultimate pan-European solution that will allow citizens and businesses on the continent to send and receive money instantly.
MONEI aims to have this stablecoin project approved by regulators after this test, to address automatic and periodic payments that would benefit from programmable equivalent fiat money. As an example, a company could schedule payments to suppliers based on sales made on a given day, or allow workers to schedule their per diem payments on a daily, weekly, or monthly basis automatically.
This project is a private initiative and has no relation to the digital euro initiative led by the European Central Bank, which is currently still in its research phases to decide if it will be issued.
What do you think of the europegged token project approved by the Bank of Spain? Tell us in the comment section below.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
