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Monei, a European payment provider, recently started testing EURM, a stable euro coin with a fixed 1:1 ratio. The token has been approved by the Bank of Spain's national sandbox, providing an opportunity for innovative projects with minimal risk. The issuance of EURM is done through the Monei wallet, which stores EURM tokens created by users who accept deposits through the Bizum payment system.
In initial tests, a limited number of individuals will be allowed to issue 10 million EURMs. EURM-backed euros will be held in custody at BBVA and Caixabank, two of Spain's leading financial institutions, ready to be exchanged at any time.
Monei's founder and CEO, Alex Saiz Verdaguer, expressed the importance of the first tests of EURM, noting:
"EURM provides unique capabilities for managing fees, payments and sending money, making these processes more secure, programmatic, cost-effective, democratic and liberalized than ever before."
EURM is released on the Ethereum and Polygon blockchains and is designed to be used in situations where using conventional digital money would be inconvenient.
Examples of uses include sending euros to pay transportation and food quotas to employees multiple times a day, automating payments to suppliers based on availability of funds, and allowing companies to provide daily payments to employees without disrupting workflow and avoiding excessive fees.
Monei plans to attract several million users once the tests are completed, targeting a potential audience of 57 million users in Spain alone.
Stablecoins issued by banks are becoming increasingly popular. Banks, realizing the loss of control over stablecoins, are taking steps to create their own, controlled by central banks. In this case, the steiblcoin was issued on the Ethereum and Polygon blockchains. Despite the limitations of the smart contract to move coins only to authorized wallets, there is a theoretical possibility for EURM wallet owners to "flood" the token to DEX, allowing it to be cashed out. However, given the creation of a stablcoin under the regulation of the Bank of Spain, the regulator will have the ability to control the flow of coins.
The question remains as to which blockchain the stablecoin will be issued on. If on public ones, there is a possibility that it will soon appear on DEX and be available for cashing out. There is also a possible scenario in which digital euros or gold steiblcoins could appear on P2P platforms like bestchange, if the function of transferring coins between individuals' wallets is not limited to smart contracts.