Bank of Spain embraces ‘digital euro,’ explains its benefits

The digital euro will make electronic payments a vital piece of the financial system, the statement claims.

The Central Bank of Spain joined a chorus of European banking institutions, preparing their customers for all the benefits of the “digital euro.” The Bank of Spain last week published a short text explaining the nature and uses of the European Union’s potential central bank digital currency (CBDC).

The bank claims that the physical format of cash “does not allow to exploit all the advantages offered by the growing digitalization of the economy and society.” However, the digital euro will make electronic payments a vital piece of the financial system.

The authors highlight the possibility of offline payments within the digital euro, emphasizing its level of privacy, equivalent to cash. They also make reservations that in the online form, users’ data would still be visible only to their particular financial institutions and not the CBDC infrastructure provider, Eurosystem.

According to the project calendar published in the text, the current “preparation phase,” launched on Oct. 18, will finish by 2025. However, the final decision on the issuance of the pan-EU CBDC still wasn’t made.

The Bank of Finland recently expressed the same amicable sentiment towards the digital euro. Its board member, Tuomas Välimäki, called it “the most topical project” in the European payment sector.

On Oct. 25, the European Central Bank (ECB) shared a link to the landing page dedicated to basic information about the digital euro. It promises to deliver an “easier life” and a “stronger Europe.”

Earlier this month, the governing council of the ECB announced the beginning of the ”preparation phase” for the digital euro project. It will last two years and focus on finalizing rules for the digital currency and selecting possible issuers.

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