Spain’s central bank, Banco de España, has released a document detailing the potential advantages of a digital euro, joining other European banks in discussing the future benefits of a central bank digital currency (CBDC). The bank’s document, published on Oct. 19, suggests that while physical cash has limitations in the increasingly digital economy, a digital euro could greatly enhance electronic payments.
The report underscores the potential for offline payments using the digital euro, maintaining privacy comparable to cash transactions. In online transactions, user data would remain confined to their respective financial institutions, without exposure to the CBDC provider, the Eurosystem.
Although the “preparation phase” for the digital euro began on Oct. 18 and is projected to conclude by 2025, a conclusive decision on introducing a Europe-wide CBDC hasn’t been finalized.
Echoing similar sentiments, the Bank of Finland’s board member, Tuomas Välimäki, described the digital euro as a top-priority project in the European payment domain. The European Central Bank (ECB) has also showcased a dedicated webpage on the digital euro, promoting its potential benefits for a convenient life and a unified Europe. Earlier in October, the ECB’s governing council marked the commencement of the digital euro’s two-year “preparation phase,” which will iron out regulations for the digital currency and identify potential issuers.
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