European payment platform Monei has announced the start of the testing phase of EURM, a euro-pegged stablecoin, as part of the Bank of Spain’s national financial sandbox. The token will leverage Ethereum’s and Polygon’s blockchains, allowing each one of a reduced number of users to issue 10 EURM during this phase.
Monei Rolls Digital Euro Token Pilot Under Bank of Spain Supervision
Monei, a European payment provider, recently rolled out the first tests for EURM, a 1:1 backed euro stablecoin, under the approval of the Bank of Spain’s national sandbox, which allows for introducing innovative projects with mitigated risks. The token will be issued using Monei’s wallet, which will hold the EURM tokens issued by the users, accepting deposits using Bizum, a popular national payment system.
During these first tests, only a small number of individuals will have the opportunity to issue 10 EURM. The euros backing the issued EURM will be under the custody of BBVA and Caixabank, two reference financial institutions in Spain, ready to be swapped at any moment.
On the relevance of EURM’s first batch of tests, Monei’s founder and CEO Alex Saiz Verdaguer stated:
EURM proposes an unprecedented innovation and we have in our hands the opportunity to make the management of collections and payments, and the sending of money more secure, programmable, economical, democratic and liberalized than ever.
EURM, issued on top of Ethereum’s and Polygon’s blockchain, is designed for applications where leveraging standard digital money would be impractical.
These include sending euros to pay transport and food quotas to employees several times a day, automatizing payments to providers depending on the funds available, organizing daily deposits to complete larger credit payments, and allowing companies to organize daily payments to employees without disrupting their workflow or paying excessive fees.
Monei expects to reach several million users with this product after the test, having a potential target of 57 million users in Spain only.
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