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How Spanish banks can exploit the digital euro to
transform the future of financial payments
Completed a working group of
30 Spanish banks and payment service providers
Including BBVA, Banco Sabadell, Banco Santander, CaixaBank and Iberpay, the concept proof-of-concept trial (PoC)
for Euro digital transactions and recommended the Central Bank's proposed digital currency (CBDC). It is designed to take advantage of existing payments infrastructure.
The task
force tested digital euro payments
across a range of use cases including contactless payments in store
e-commerce transactions and peer-to-peer transfers (P2P)
In order to analyze how the Central Bank's digital currency (CBDC) coexists with and uses digital payment tools including the Spanish instant payment platform Bizum.
In particular, Bizum will be ready to
communicate with other potential European services.
Their existing user registration mechanisms
transfers between different financial entities
certification, transaction handling, fraud prevention and management, as well as other available services or standards (such as instant payments)
can be utilized to ensure the same level of
safeguards security and safeguards.
And the privacy provided by the current payment methods in the future digital euro
In addition
This approach can help reduce the significant effort required to deploy a brand
new infrastructure and adaptations that market participants need to make.
In this regard proof of concept (PoC)
highlighted the importance of identifying an equally simple user experience
for offline payments, which will be the main differentiator of
the digital euro compared to current solutions.
The Euro Digital Project
must exploit all possible synergies with immediate payments
building on existing infrastructure and solutions
Instead of
developing new solutions from scratch
while simultaneously serving as an engine for expanding and linking local instant payments "solutions," BBVA's Pablo Urbola adds in a blog post.
This would make it easier to deploy the digital euro
more efficiently and allow it to gain faster momentum.
In addition
payments can be made throughout the eurozone
without the mediation of foreign companies
with central bank (digital euro) funds and commercial bank
(current bezoom) funds
thereby expanding consumer choices.
BBVA
Banco Sabadell
Banco Santander
Caixa Guissona
Caixa Ontinyent and Iberpay were among the banks
and payment providers who originally set up the in-store Euro Digital
Payment Experience Working Group in November 2022.