Spain is positioning itself at the forefront of the digital revolution in the European financial space with the launch of trials of EURM, a stablecoin backed by the euro, by Spanish fintech Monei. This initiative, under the supervision of the Bank of Spain, marks a significant step towards the complete digitization of payments, promising a faster, cheaper and more secure transaction method.
A regulatory innovation
On January 29, Monei announced the start of EURM testing in a regulatory sandbox, a first in Spain. This pilot project, which began in January, engages a restricted group of individual users in order to minimize margins of error and examine stablecoin's transaction capability. To participate, each user must verify their identity, download a digital wallet, deposit 10 euros into their account and exchange this sum for 10 EURM.
Alex Saiz Verdaguer, CEO of Monei, describes the trial as "another step on our path towards the complete digitization of payments". He sees EURM as an opportunity to transfer money in a "more secure, programmable, cost-effective, democratic and liberalized way".
Stablecoin EURM: more than a currency, a transactional revolution
Each EURM is backed on a 1:1 basis by the euro and held in banks in Spain such as BBVA and Caixabank, offering a solid guarantee of its value. The stablecoin infrastructure also offers various options for businesses, such as paying employees on a monthly or daily basis, or awarding productivity bonuses in real time, "based on robotic instructions".
The transaction cost of EURM is claimed to be derisory, representing only "thousandths of a euro per transaction", and enables exchanges between two people with a cell phone in a matter of milliseconds. This innovation promises to revolutionize the way financial transactions are carried out, offering a faster and cheaper alternative to traditional methods.
Towards adoption by the Bank of Spain?
The Bank of Spain launched its own wholesale central bank digital currency (CBDC) program in 2022 and has been testing separately, in partnership with Cecabank, Abanca and Adhara Blockchain, since January 2024. Verdaguer suggests that EURM could become the Bank of Spain's preferred technology, highlighting the importance of this stablecoin in the Spanish financial landscape.
The Spanish CBDC program is unique, declared independent of the Digital Euro project which, if implemented, would cover all Eurozone economies. In addition, the Spanish Ministry of Economic Affairs and Digital Transformation has announced its intention to implement the European Union's Cryptocurrency Market Regulation six months ahead of schedule, testifying to Spain's commitment to innovation and regulation in the field of digital currencies.
This Spanish initiative could well lay the foundations for a new era of financial transactions in the European Union, offering a successful model for the adoption of secure and efficient digital financial technologies. EURM represents a giant step towards the realization of an inclusive digital payment system, capable of meeting the demands of a globalized and constantly evolving economy.
