Monerium which is regulated to offer e-money in the European Economic Area (EEA), is teaming up with Algorand in a non-exclusive partnership deal to introduce fiat money transactions within the Algorand blockchain platform, CoinDesk reports.
The deal which was announced on Tuesday, will see the Iceland-based Monerium issue programmable e-money on Algorand protocol. According to Algorand’s COO, Sean Ford, the two firms will work together on real-world cases which can be solved through advanced blockchain technology utilizing the programmable e-money from Monerium.
Today we welcome @monerium to the Algorand ecosystem! With a shared vision for real-world use cases that are enabled by advanced #blockchain tech, we are thrilled to see Monerium bring their solution for e-money to Algorand: https://t.co/THZ0XxBIFj pic.twitter.com/EPKo7Qx3ht
— Algorand (@Algorand) January 21, 2020
Monerium, backed by ConsenSys, enables customers to come up with blockchain-based financial solutions like cross-border payment settlements utilizing various fiat currencies like the US dollar, euro as well as British pound. Monerium holds the customer’s deposits in the form of the fiat money and releases it in virtual form which can easily be used on a blockchain platform.
The firm believes that digital fiat money can help in cost savings through elimination of intermediaries as well as allowing complex payment forms.
Monerium was started in 2016 and got additional media attention after ConsenSys announced investment of $2 million during the seed round last year. In June last year, the firm was awarded an e-money licence by Icelandic Financial Supervisory Authority which grants it authority to offer its services in EU zone including Liechtenstein and Norway.
Algorand was started in 2017 and was created by award winning cryptographer Silvio Micali and has lately drew considerable interest from investors in the industry. It was able to raise slightly over $60 million worth of token sales in about four hours last year. The release of Algorand 2.0 in November last year brought new features like smart contracts support as well as decentralized finance (DeFi) aspects.
According to Monerium CEO, Sveinn Valfells,
“Algorand incorporates key features for many mainstream use-cases, including stateless smart contracts and scaleable proof-of-stake consensus. The Algorand leadership has taken a pragmatic and deliberate approach in designing a blockchain for mainstream applications while staying close to the ethos of the open source community.”