"The Bank of Spain looks to the future with the digital euro and improve electronic payments"

 

The Bank of

Spain looks to the future with the digital euro

and improve electronic payments

The Central Bank of Spain confirmed its digital support for the euro, citing its ability to improve electronic payments across the European Union.

The banking regulator stated its position in a statement summarizing the benefits of the digital euro on the diminishing use of physical cash in the region.

In the report

Juan Ayuso, the bank's chief operating officer

noted that the digital euro would not only improve the status of payments

but also ensure the independence of the European financial system.

Ayusu stated that the proposed digital currency of

the Central Bank (CBDC) would work like cash

Pledging that it will be widely accepted by traders across the EU.

It has overturned claims that the digital euro will face a difficult swath

and will be accepted because it will provide many key jobs.

According to the statement:

Ensuring access to funds issued by the Central Bank in the digital environment

 while preserving these essential features of cash

will contribute to maintaining that confidence in

the currency in the new environment.

The CEO of the Central Bank cited the privacy features of the digital euro as a positive aspect for consumers.

"Only users can see their payment information."

Eurosystem will be responsible for processing payments but will not have details on both parties dealing.

Ayuso revealed that the European Central Bank (ECB) is weighing behind the development of offline functionality for the digital euro.

However

 in its early stages

The offline function has been promoted to increase financial inclusion in

the region in places where there is no Internet or electricity.

The statement said:

"Offline mode will provide a backup solution in the event of network disruption and will allow digital payments to be transferred to geographical areas where there is no current option."

Research on the development of the European Central Bank has reached

a two-year mark

with a series of public consultations and conceptualization.

In mid-October

the ECB agreed with member states to "make all preparations

to be in a position to issue the digital euro."

However, no decision has yet been made to issue the digital euro, but banking regulators across the region are preparing for a possible launch date in 2026.

Commercial banks

are looking to play a bigger role

Commercial banks across the EU are looking to play a central role in developing and issuing digital euros to avoid major disruptions in the payment landscape.

In March, the Federation of German Banks wrote a letter to the European

Central Bank

urging it to use commercial banks as part of its plans.

Banks argue that they can leverage their existing relationships with customers to ensure smooth integration of central banks' cryptocurrencies into mainstream usage.

Based on today's business relationships

commercial banks know better what their customers need from digital funds

this applies to both consumers, as well as companies with which banks deal."