The Bank of Spain, which has started conducting technical research on Central Bank Digital Currencies (CBDCs), has published an informative text on its official website about the “Digital Euro”. The published text discusses the potential benefits of CBDCs and provides a brief explanation of CBDCs.
CBDC Studies are Gaining Momentum
With the increasing adoption of blockchain technology and digital assets by a wider user base, CBDCs have become an important topic of discussion in the public eye. Many central banks around the world have started conducting various research studies to assess the potential benefits and risks of CBDCs.
Although the European Central Bank does not have an official decision to issue a “digital euro”, most European central banks have intensified their efforts in researching CBDCs. The Bank of Spain, which plans to complete its research on CBDCs by 2025, has also published a brief informative text about the “Digital Euro” today.
The Bank of Spain, which has published a brief informative text about the “Digital Euro” today, discussed the potential benefits of CBDCs and provided a brief explanation about central bank digital currencies. The published text highlighted that a Digital Euro could potentially make electronic payments an essential part of the financial system.
Preparations for a Digital Euro by the Bank of Spain
In its published text today, the Bank of Spain stated that the physical cash format does not allow for taking advantage of all the benefits offered by the increasing digitization of the economy and society, and that a potential Digital Euro could make electronic payments an essential part of the financial system.
The Bank of Spain also emphasized that offline payments can be made with Digital Euro and claimed that it provides financial privacy equivalent to cash. However, while the Bank of Spain argues that digital euro is equivalent to cash in terms of financial privacy, many authorities argue that CBDCs raise serious concerns in this regard.
