The beginning of a pilot program including the creation and use of stablecoins linked to the euro has been approved by the Bank of Spain.
In order to experiment with digital euros in payment applications and improve their transparency, users will be able to issue them with fiat deposits through the initiative that MONEI, a fintech organization, is establishing.
Digital Euro Token Tests are authorized by the Bank of Spain
Stablecoin and CBDC (central bank digital currency) experimentation is increasingly popular in Europe.
The Bank of Spain approved a pilot program involving the creation of digital tokens pegged to the euro on January 19.
The initiative will let users create their own euro stablecoins for a variety of uses, and it is being led by MONEI, a licensed fintech payments company.
The eurm token will be issued with user deposits and backed by actual euros using Ethereum and Polygon blockchain technology.
The test, which is included in the activities of the bank of Sain’s financial sandbox, only permits the issue of a maximum of 10 euros by any user who has registered on the MONEI platform.
Due to Spain’s 57 million subscriber phone lines, the test includes the issue of up to 570 million euros.
As part of its modernization approach to the Eurozone’s payment system, MONEI is showcasing their digital euro stablecoin, which speeds up payments while lowering associated operational expenses.
After passing this test, MONEI hopes that this stablecoin project would be accepted by regulators to address automatic and recurring payments that would benefit from programmable fiat equivalent money.
This project is a privately-led initiative and has no connection to the European Central Bank’s (ECB) proposed digital euro, which is still being investigated to see whether it will be issued.