The senior official of the Bank of Spain spoke on the importance of the digital euro project while also voicing concerns for the European banking system.
Margarita Delgado, the Deputy Governor of the Bank of Spain, recently had interesting opinions to share at an event. She described the digital euro project in detail, along with its other aspects. Her entire speech was uploaded on the central bank’s website. In June 2023, the European Central Bank also recommended legislative changes for the digital euro.
Delgado drew a scenario where the digital euro could affect the European banking system. She described the many advantages of the digital currency. On the other hand, she pondered how it could affect private payment solutions.
“We believe there is enough space for a digital euro and private payment solutions to co-exist. […] In fact, our expectation is that the digital euro enables the development of new pan-european payment and financial services by the private sector, making it easier to compete with non-european solutions,” said the Bank of Spain executive.
She also put forward some risk management practices for the digital euro. Delgado claimed it had to be covered with financial security. She also described that the digital currency should not affect the financial system’s stability in europe.
The digital euro could be launched around October 2023. Delgado claimed the ECB should take the necessary steps till then for the banking system’s stability. After its launch, the digital euro would be used across Europe, claimed the Deputy Governor.