A group of Spanish deputies filed a proposal seeking to accelerate the implementation of a digital euro. The proposal presented on June 8 asks for the creation of a group to study the implementation of a digital currency in the Eurozone. The Bank of Spain would aid the proposed study group. However, the issuance of a digital euro is still under study by the European Central Bank (ECB).
The proposal mentions four motives to advance the digital euro research.
The proposal mentions four motives to advance the digital euro research: first, the advances in digitalization techniques that make these new payment forms possible. Second, the establishment of a digital euro would decelerate the use of cryptocurrencies and other payment methods separated from the banking system. These methods are difficult to control and scrutinize. Another motive mentioned in the proposal has to do with financial inclusion. It states that a CBDC would improve financial inclusion, with the penetration of smartphones aiding the population to acquire financial products directly.
The digital euro is still in the experimental stages.
The proposal presented by these Spanish deputies seems contradictory, considering a digital euro is still under study. The ECB had declared this type of electronic currency is still in the experimentation phases. The official digital euro website clarifies the institution will decide on this subject towards the middle of this year. Christine Lagarde, President of the European Central Bank, stated the digital euro could arrive in five years. She stressed they had to do it right because the task what not trivial. Countries like the Bahamas and China have already been testing and phasing in their own CBDCs.