The Spanish central bank Banco de España has added its voice to the growing number of European banking institutions supporting the digital euro concept. In a statement released on October 19, the central bank detailed the potential nature and use of the European Union Central Bank’s upcoming digital currency (CBDC).
The statement pointed out that physical cash is not enough to take advantage of an increasingly digital economy and society. However, the digital euro is expected to be the cornerstone of a financial system that will enable offline payments with a level of privacy similar to physical cash. The authors emphasized that when used online, users’ data will remain visible only to their financial institutions, not to the CBDC infrastructure provider, the Eurosystem.
The statement also outlined the project’s timeline, with the current “preparatory phase” launched on October 18 expected to be completed by 2025. The final decision on the launch of the Europe-wide CBDC has yet to be finalised.
The Central Bank of Finland expressed similar enthusiasm for the digital euro, with board member Tuomas Välimäki calling it the “most up-to-date project” in the European payment sector.
The European Central Bank (ECB) has created a special landing page that provides basic information about the digital euro and promises a future of “easier life” and a “stronger Europe”.
At the beginning of October, the Governing Council of the ECB announced the start of the “preparatory phase” of the digital euro project. This two-year phase will focus on defining the rules for the digital currency and selecting potential issuers.
