Testing Begins in Spain for New Euro-Backed Digital Currency

By Yousra Anwar Ahmed

A new digital currency backed by the euro began testing this January in Spain under the supervision of the Bank of Spain. Called EURM, this "stablecoin" was developed by Spanish fintech startup MONEI and aims to facilitate faster and cheaper payments.

The EURM trials are taking place within a regulatory sandbox, allowing real-world testing with actual users while minimizing risks. Participation is currently limited to a small group of individual volunteers who will test sending transactions using the token.

EURM is designed to always maintain a 1:1 ratio with the euro. For every token issued, one euro is held in reserve at various Spanish banks to back its value. Users can cash out their EURM for euros at any time.

"They represent another step on our path towards the complete digitalization of payments," said MONEI CEO Alex Saiz Verdaguer in an announcement. "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."

While the current trial is limited, MONEI envisions EURM facilitating near-instant transactions between any mobile users globally for negligible fees. This would require further testing and approvals before full rollout.

Spain has shown growing interest in digital currency and blockchain technology. Last year, the Bank of Spain announced its own wholesale CBDC program to develop a digital form of the euro. It is not yet clear if EURM may play a role in this project going forward.

Source from coinmarketcap: https://coinmarketcap.com/