Spanish fintech company Monei has initiated testing of its euro-backed stablecoin, EURM, with oversight from the Bank of Spain.

The trial, starting in January as part of the regulatory sandbox, aims to validate EURM's transaction capabilities with a select group of individual users to maintain a low error margin.

This process involves users verifying their identity, setting up a wallet, depositing 10 euros into their account, and then exchanging it for 10 EURM.

Each unit of EURM is guaranteed with a 1:1 backing by euros, securely kept in reputable Spanish banks such as BBVA and Caixabank.

This development indicates a significant step towards the integration of stablecoins within regulated European financial systems, hinting at the potential wider acceptance and utility of digital currencies in mainstream banking.