Digital euro from Spain?

The Bank of Spain allowed MONEI to test the digital euro in a controlled environment. As you can see, the race to be the first to introduce a digital currency is still on. Among numerous countries testing their CBDBs, Spain is not far behind. Read more about the digital euro in this article.

How to operate with digital euro?

Users will be able to use digital euros via a special application. During the trial period, the user only has to provide his phone number and authenticate his identity via video identification. Following that, he has to deposit euros into his wallet using Bizum, a payment service provider.

The purpose of the app is that users will deposit euros and receive an equivalent amount of tokens in exchange. Furthermore, Monei tokens can be converted into euros at any time. The tokens will be backed by genuine euros held by Banco Bilbao Vizcaya Argentaria and Caixabank in a 1:1 ratio.

Details

The project will be taking place as a part of Spain’s financial environment. Also, it will serve as the foundation for the European Central Bank’s (ECB) Digital Euro initiative. The project provides a controlled testing environment for financial measures in Spain and is overseen by the Central Bank.

As reported, the testing will run between 6 and 12 months. When the testing is over, the Bank will analyze the results and decide on public token distribution.

Where to spend digital euros?

There are numerous options for using the digital euro once it is approved by the Bank of Spain. One of them is sending cash to pay for employee travel or meals, helping businesses to digitize and plan daily payments, collecting paychecks, and other services.

All in all, the usefulness of the digital euro can be essentially limitless if only retailers and businesses are willing to accept it.

CBDCs around the world

Over the last three years, the total number of countries considering launching their digital currency (CBDC) has tripled. There were 35 states in 2020, and by the end of 2022, there will be 114, accounting for 95% of the world’s GDP.

More than 20 countries expect to start CBDC pilot programs this year. Australia, Thailand, India, and South Korea are among them. The EU, Bahamas, China, Jamaica, Ukraine, and Sweden, are among the countries that are developing or have established trial programs.

In conclusion, MONEI’s CEO and founder, Alex Sais Verdaguer, highlighted the project’s potential, stating that digital currencies represent the future. According to him, the implementation of EURM gives a chance to demonstrate to other European and global countries that Spain is at the forefront of technical innovation. Nonetheless, Verdaguer views his proposal as a “pan-European solution,” allowing citizens and companies to send and receive money easily and rapidly.

Meanwhile, the European Union has postponed a vote on the MiCA directive package until April. Its primary purpose is to govern the eurozone’s cryptocurrency market. Furthermore, the package was one of the first EU attempts aimed at regulating the cryptocurrency industry. The delay was most likely caused by issues with translating the almost 400-page document into the 24 official languages.