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Bank of Spain embraces and explains the benefits of Digital Euro

Published

1 year ago

October 25, 2023

According to an ECB statement, the digital euro will play a pivotal role in the financial system by enabling electronic payments.

The Banco de España, like other European central banks, is taking steps to educate its customers about the potential benefits of the digital euro. In a post on October 19 , the bank discussed the features and uses of the potential CBDC.

The Banco de España asserts that physical cash, in its current form, cannot fully leverage the advantages of digitalization. The bank contends that the digital euro will be crucial in ensuring the continued relevance of electronic payments in the future.

The Banco de España suggests that the digital euro could facilitate offline payments while preserving the privacy advantages of physical cash.

According to the report, while financial institutions would have visibility into users’ data when making online payments with the digital euro, the Eurosystem would not.

As per the project calendar outlined in the text, the “preparation phase,” which commenced on October 18, has a slated completion date of 2025. However, a final decision on the issuance of a pan-EU CBDC is still pending.

Tuomas Välimäki, a board member at the Bank of Finland, has also expressed a positive view of the digital euro, labeling it “the most topical project” in the European payment sector.

However, On October 25, the European Central Bank (ECB) published a landing page that offers an overview of the digital euro project. It suggests that the digital euro could provide significant benefits for European citizens and businesses, simplifying life and strengthening the European economy.

Earlier this month, the ECB’s governing council announced the commencement of the “preparation phase” for the digital euro. This two-year period will focus on finalizing the rules and processes for the digital currency and selecting the banks that will issue the digital euro.