Bank of Spain Outlines Potential Advantages of a 'Digital Euro'
Summary:
The Bank of Spain has unveiled preliminary information about a potential "digital euro," joining other European banks in preparing customers for a new age of European Union-sanctioned digital currency. The bank emphasized the privacy and adaptability of the digital euro to the evolving financial landscape. According to the provided timeline, the preparation phase is slated to end by 2025, but the final decision regarding issuance is still pending. This digital currency is seen as a means to simplify financial transactions and strengthen Europe.
The Bank of Spain is now among the host of European financial institutions prepping their customers for the possible introduction of a "digital euro." It has recently released a brief guide to outline the purpose and potential uses of a central bank digital currency (CBDC) proposed by the European Union. According to the bank, the traditional cash economy isn't fully adaptable to the ongoing digital revolution in finance. In contrast, the digital euro would integrate electronic transactions more effectively into the financial ecosystem. The bank highlighted the potential for offline payments using this digital euro, stressing the currency's privacy levels to be similar to cash transactions. In online transactions, it reassured that user data would remain confidential to their respective banks and not be visible to the CBDC's technical operative system, the Eurosystem. The bank delineates a timeline for the project with the current "preparation phase," which started on October 18, set to conclude in 2025. While enthusiasm for the digital euro seems promising, the final determination on whether to issue this pan-European CBDC has yet to be made. The Finnish central bank expressed similar views, engagingly supporting the digital euro, with its board member, Tuomas Välimäki, believing it to be the most pressing undertaking in the European payments arena. On October 25, the European Central Bank (ECB) directed the public to a page with basic information about the digital euro, portraying it as a potential tool for simplifying financial activities and fortifying Europe. The ECB's governing council disclosed the start of the "preparation phase" for this digital euro initiative earlier this month. Focusing on setting the boundaries and selecting potential issuers will take two years.
Published At
10/25/2023 10:23:58 AM
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