The Financial Supervisory Authority of Iceland has reportedly granted a license to Monerium. The license enables Monerium to issue e-money on blockchains. That full license ranks as the first license for e-money on blockchains worldwide. It was issued under the terms and conditions of the EU e-money regulations.
Furthermore, the license is passportable within the entire European Economic Area and to external jurisdictions. This depends on regulatory approval and destination country regulations. E-money is tested and proven infrastructure for digital fiat currency already in use for mobile wallets and pre-paid cards.
Eliminating the Intermediaries
Issuing e-money on blockchains will enable Monerium to eliminate the need for intermediaries. Additionally, it offers the ability to automate financial transactions in a variety of sectors. These include securities settlement, payments, e-commerce, and trade finance.
Concurrently, e-money on blockchains supports and extend Satoshi Nakamoto’s vision of digital peer-to-peer currency transactions to a regulated form of digital fiat currency. Four repeat entrepreneurs with extensive experience from technology and finance launched Monerium in 2015. It has raised almost $2 million in funding from Crowberry Capital, ConsenSys, and several private investors.
What does the license mean?
The co-founder, Jon Helgi Egilsson, explained that Monerium e-money encompasses the benefits of programmable money on the blockchain. Moreover, it is the closest form of central bank money there is. All that information is heavily based on a proven EU regulatory framework.
The CEO and co-founder of Monerium, Sveinn Valfells, added that receiving an e-money license is a significant milestone. The company’s goal is to ensure that digital currency is accessible, secure, and easy to transact.
To fully support the e-money issuance process, Monerium has created a digital banking platform. That platform is compatible with every major blockchain protocols and extensible to other financial services and clients. Also, the platform is based on open standards and ideally designed to support decentralized financial applications.
Monerium is launching a closed beta platform with original partners and customers. The company wants to partner with distributed application developers and different blockchain platform providers.