The project, which would allow users to use the tokens, is a part of the sandbox initiative of the central bank.
The Bank of Spain has approved a project which would include testing a digital asset linked to the euro. The project is a part of the sandbox initiative of Banco de España, or the Bank of Spain, which had the fintech company Monei participating in it.
The main goal of the sandbox initiative was to create a regulated environment for the testing of financial projects in Spain under the eyes of the central bank. The Bank of Spain reportedly allowed Monei to go ahead with the testing, which would continue for six to twelve months. The EURM token would be launched, using which Spanish residents would be able to send up to 10 euros if they just had a phone number.
The EURM tokens would be supported in the ratio of 1:1 with actual euros at Banco Bilbao Vizcaya Argentaria and Caixabank. Monei CEO Álex Saiz Verdaguer welcomed the initiative and claimed that the future of payments was digital. He also said this was a good opportunity for them to show the world their proactiveness in adopting digital payments.
He added, “[The Bank of Spain] may sit down with the ECB and say that we have the product, that it is regulated and supervised and that it is shaped from there,” referring to Spain’s own CBDC. The European Central Bank has been involved in developing a CBDC in the form of a digital euro, slated to release in 2026.