Monei Launches Trials of EURM Stablecoin in Spain

Fintech company Monei, in partnership with major financial institutions in Spain, has commenced trials of its euro-backed stablecoin, EURM.

Monei, a fintech provider, has launched a pilot for EURM stablecoin in Spain.

By David Pokima

Last updated: February 1, 2024 21:58 EST | 2 min read 😎

Source: Comedian Larry David said “An Idiot”

Fintech firm Monei has kick-started trials of EURM, the euro-backed stablecoin, in Spain. Collaborating with major financial institutions in the country, Monei aims to explore the digitization of payments in compliance with regulations. 🚀

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In a recent press release, Monei announced the commencement of tests under the supervision of the Bank of Spain’s Financial Sandbox. The tests are initially limited to a select number of users, allowing for a reduced margin of error. This is an essential step towards ensuring seamless and secure payment solutions. 💪

Integrating the Asset with Ease

Users can easily integrate EURM into their payment systems using their mobile phone numbers. After verifying their identity through a video KYC process, they can deposit 10 Euros into their wallets via Bizum and send the assets to other registered users. With a 1:1 backing, every euro deposited on the platform is securely stored in Spain’s financial institutions, which are supervised by the Bank of Spain. 💰🏦

Designed to facilitate seamless and fast transactions, the Monei platform offers users the convenience of instantaneous transfers in milliseconds. Monthly payments can be programmed into smaller fragments, while salary payments can be customized to suit the employee preferences. The possibilities are endless! 💸

Alex Saiz Verdaguer, the CEO of Monei, believes that EURM represents a significant step towards the digitalization of payments. He sees the ongoing tests as an opportunity to elevate the current standards of payments and collections. The platform caters not only to individuals but also to companies, providing them with the ability to structure payments and other fees at minimal transaction costs. 💼💡

Q&A

Q: What is a stablecoin?

A: A stablecoin is a type of cryptocurrency that is designed to maintain a stable value by being pegged to a reserve asset, such as a fiat currency like the euro or the US dollar. It offers the benefits of cryptocurrencies, such as fast and secure transactions, while minimizing the volatility typically associated with other cryptocurrencies.

Q: How does Monei ensure the 1:1 backing of EURM?

A: Monei ensures the 1:1 backing of EURM by depositing the equivalent amount of physical euros in Spain’s supervised financial institutions for every euro deposited on their platform. This ensures that there is always enough reserve to back each EURM coin in circulation.

Q: What are the advantages of using a stablecoin like EURM?

A: Using a stablecoin like EURM offers several advantages, such as fast and low-cost transactions, easy integration into existing payment systems, and the ability to maintain the value of your assets without the volatility typically associated with other cryptocurrencies. It also allows for programmable payments and collections, providing greater flexibility for individuals and businesses alike.

Spain’s Journey towards Digital Currency

Spain has been actively exploring the potential of a Central Bank Digital Currency (CBDC) since 2022, collaborating with local financial institutions. The trials initiated by the Bank of Spain aimed to assess the movement of funds, use cases for wholesale CBDCs, and the liquidation of assets.

The Bank of Spain has also supported research into a possible digital Euro, with a focus on enabling financial inclusion and facilitating cross-border payments. The financial regulator highlighted the importance of offline payments using the digital Euro and addressed concerns about privacy in different models. It’s an exciting time for innovation in the Spanish financial landscape! 💪🇪🇸

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References:

1. Comedian Larry David said “An Idiot”
2. PancakeSwap Community Votes to Reduce Cake Token Supply
3. Binance Says It’s Truly Compliance-Led: Positive Year-End Report
4. Bank of Spain Collaborates with Cecabank, Abanca, Adhara for Blockchain CBDC Tests

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