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Spanish fintech firm tests euro-backed stablecoin

Pablo Hernández de Cos, governor of the Bank of Spain | bde.es

By Crypto Republique

Feb 8, 2024

Monei, a Spanish financial technology (fintech) firm, recently announced the development of a euro-backed stablecoin named EURM and its testing commencement in January. The trials are being conducted within the Financial Sandbox of the Bank of Spain.

According to a press release from Monei, the testing phase involves a small group of users under the supervision of the Bank of Spain. This user group is working diligently to ensure that all EURM transactions are executed correctly. The development of EURM began in 2022, and by December 2023, it was approved for admission into the regulatory sandbox by the General Secretariat of the Treasury and International Financing. Monei envisions practical applications for EURM in the future, such as facilitating faster cross-border transactions, scheduling payments, and enabling prorated payments.

Alex Saiz Verdaguer, CEO and founder of Monei, views this testing phase as "another step on our path towards the complete digitalization of payments," according to the press release. In a statement, Verdaguer expressed his optimism about this pilot test as an opportunity to refine a project he has full confidence in. He described EURM as an unprecedented innovation with potential to make collections and payments management more secure, programmable, economical, democratic and liberalized than ever before.

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In related news from across the Atlantic, U.S. Treasury Secretary Janet Yellen urged American lawmakers to establish regulations for stablecoins. During her testimony at a Feb. 6 House Financial Services Committee meeting she stated: "Applicable rules and regulations should be enforced, and Congress should pass legislation to provide for the regulation of stablecoins and of the spot market for crypto-assets that are not securities," according to a copy of her testimony.

The European Central Bank (ECB), in October last year, expressed that a digital euro would support the shift towards digital payments and online shopping — trends accelerated by the pandemic. The ECB stated on its website: "A digital euro would make people’s lives easier by providing something that does not currently exist: a digital means of payment universally accepted throughout the euro area, for payments in shops, online or from person to person." It further added that like cash, a digital euro would be risk-free, widely accessible, user-friendly and free for basic use. Moreover, the ECB claimed that a digital euro would enhance the sovereignty of the euro and the effectiveness of Europe's economic ecosystem.

Monei is headquartered in Málaga, Spain and specializes in facilitating digital payments, according to the press release. Its solutions can be integrated with Shopify and other e-commerce platforms. Monei's app enables businesses to accept digital payments from customers' mobile phones.