Spain Kickstarts Euro-Backed Stablecoin Trials 

Spanish fintech company Monei has initiated trials for EURM, a euro-backed stablecoin, under the supervision of the Bank of Spain. As per an announcement on Monei's website dated January 29, the regulatory sandbox trial began in January, involving individual users to minimize errors. 

The trial focuses on evaluating EURM's transaction capabilities. Users verify their identity, upload their wallets, deposit 10 euros into their accounts, and exchange it for 10 EURM. Each EURM is pegged 1:1 to the euro and securely stored in Spanish banks like BBVA and Caixabank.

Monei CEO Alex Saiz Verdaguer sees the trial as a crucial step toward the comprehensive digitalization of payments. He anticipates that the stablecoin will offer a more secure, programmable, economical, democratic, and liberalized way of sending money. 

According to the announcement, EURM aims to facilitate near-instantaneous transactions between individuals with access to a mobile phone, charging only “thousandths of a euro per transaction” in commission fees. Additionally, the stablecoin's infrastructure supports corporate options, including monthly or daily employee payments and real-time productivity bonuses based on robotic instructions.

Verdaguer also hinted at the EURM potentially becoming the preferred technology of the Bank of Spain, aligning with the bank's launch of its wholesale central bank digital currency (CBDC) program in 2022. The Spanish CBDC program stands out for its independence from the digital euro project, which covers all economies in the eurozone if implemented. 

Furthermore, the Spanish Ministry of Economic Affairs and Digital Transformation announced plans to implement the European Union’s Markets in Crypto-Assets Regulation six months before the deadline, showcasing Spain's proactive approach to digital transformation in the financial sector.