The Financial Supervisory Authority of Iceland has issued a licence to Monerium to issue e-money on blockchains.
The full licence is the world’s first licence for e-money on blockchains issued under EU e-money regulations. Moreover, the licence is passportable within the European Economic Area and to external jurisdictions. This is subject to regulatory approval and destination country regulations.
E-money is a proven framework for digital fiat currency already in use for pre-paid cards and mobile wallets.
e-money on blockchains: removing the need for intermediaries
By issuing e-money on blockchains, Monerium removes the need for intermediaries. In addition, it provides the ability to automate financial transactions in many sectors. These include payments, trade finance, securities settlement, and ecommerce.
At the same time, e-money on blockchains extends Satoshi Nakamoto’s vision of online peer-to-peer currency transactions to a regulated form of digital fiat currency.
Monerium was founded in 2015 by four repeat entrepreneurs with experience from finance and technology. It has raised around $2m in funding from ConsenSys, Crowberry Capital, and private investors.
Jon Helgi Egilsson, co-founder,says: “Monerium e-money encompasses the benefits of programmable money on blockchain. In addition it is the closest form of central bank money there is – based on a proven EU regulatory framework.”
Sveinn Valfells, CEO and co-founder, adds: “Receiving an e-money license is a major milestone. Our goal is to make digital currency accessible, secure, and simple to transact.
“To support our e-money issuance, we have developed a digital banking platform. It is compatible with all leading blockchain protocols and extensible to other clients and financial services.
“Our platform is based on open standards and designed to support decentralised financial applications.”
Monerium is entering closed beta with initial customers and partners. The company plans to partner with distributed application developers and blockchain platform providers.