Key facts:
- The tests are restricted to a small group of natural persons with different profiles.
- EURM makes it easy to send money to any user who has a mobile phone.
The Spanish fintech Monei began testing on January 31 with EURM, a stablecoin anchored to the euro whose project was admitted to the regulatory sandbox supervised by the Bank of Spain.
The tests are restricted to a few dozen users who will rehearse the execution of transactions with the token, as explained by Monei in a statement.
“In the framework of this controlled testing space, a reduced sample of participants has been taken, with a minimized margin of error,” the letter states. They add that the group of users is made up of natural persons.
Participants respond to different profiles to obtain a broader idea of the different use cases. The group of users is made up of both young and old people, as well as people with advanced technical knowledge and people without knowledge.
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The fintech ensures that the operation of the token is simple, “facilitating the sending of money in milliseconds.” Among its advantages, the possibility of making shipments to other users anywhere in the world who have a mobile phone stands out.
“The user enters their phone number and, after verifying their identity through video identification, they can load the wallet with a maximum of 10 real euros using the Bizum payment system”, supported by most Spanish banks.
In this way, the system will convert the EURM, with a 1:1 parity with the euro, allowing it to be sent to the rest of the registered users. The tokens are also deposited in a CaixaBank account so it will be possible to exchange them for physical euros at any time.
With these tests, Monei hopes to gather important information to continue developing the stablecoin prototype.
This stablecoin project, which works with the technology of the Ethereum and Polygon blockchains, began to be developed in 2022 when it received approval from the General Secretariat of the Treasury and International Financing.
In this way, its participation in the Spanish regulatory sandbox was admitted. This is a space created by the authorities to test innovative projects related to technologies in the financial sector (Fintech).
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The EURM has sometimes been confused with the digital euro, the project of the European Central Bank (ECB). However, these are two totally different proposals.
«The digital euro will be backed by the ECB and EURM is issued by Monei. At a technological level, they could potentially have many similarities, although, as far as the digital euro is concerned, there is no public or official definition of what its technical particularities will be,” explains Alex Saiz Verdaguer, founder and CEO of Monei.
Being totally different projects, the EURM and the digital euro “are going to follow different paths” at the regulatory level, added the manager.
In this sense, the fact that the stablecoin must comply with the rules established in the Regulation for the Cryptoactive Market (MiCA) is taken into account, whose rules related to stable currencies will be launched in 2024.