Bank of Spain Highlights Benefits of Digital Euro in Recent Publication

According to Cointelegraph, the Central Bank of Spain has joined other European banking institutions in preparing their customers for the benefits of the potential 'digital euro.' The bank recently 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 for the full exploitation of 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 of the publication highlight the possibility of offline payments within the digital euro, emphasizing its level of privacy, equivalent to cash. They also note 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 has not yet been made.The Bank of Finland recently expressed a similar 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, promising 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, which will last two years and focus on finalizing rules for the digital currency and selecting possible issuers.