Deputy head of the Central Bank of Spain Margarita Delgado said that before making a final decision on the launch of the digital euro, the European Central Bank should analyze the potential impact of the virtual currency on the banking system of the eurozone.
Margarita Delgado says that the potential and obvious consequences of introducing a new generation of currency should be carefully studied in order to ensure the stability of the financial system, as well as its profitability and a high level of ability to compete.
The European Central Bank is currently analyzing the launch of the digital currency. This solution will help to cope with the problem of a shortage of European payment service providers. The financial regulator plans to finalize its position on the launch of the digital euro in October.
Margarita Delgado argues that the issue of a new generation of currency should not become a threat to the stability of the financial system. At the same time, she noted the reliability of the eurozone banking industry but stressed that the elements of this structure that could affect its competitiveness and the profitability of lenders should be studied.
The deputy head of the Central Bank of Spain also drew attention to the assessment of the overall impact of the digital euro on the liquidity of financial institutions. The transfer of money from traditional bank accounts to virtual wallets in euros can potentially become a factor affecting the level of liquidity of creditors.
Margarita Delgado speaks about the need to create mechanisms, the use of which will mitigate the unforeseen consequences of the introduction of a digital currency. One of the measures in this context could be a restriction on the number of units of virtual currency that users can have. The deputy head of the Central Bank of Spain noted that the potential limit could be set at about 3 thousand euros.
At the same time, Margarita Delgado spoke about the advantages of the digital euro, noting that in this case a payment solution based on European infrastructure and spreading throughout the eurozone will be provided.
This year, the president of the European Central Bank, Christine Lagarde, said that retail virtual currency can offer Europeans greater stability and autonomy since many citizens currently use payment applications and cards that are not European.
In June, the European Commission stated that the advantages of the new-generation currency far outweigh the risks associated with its circulation. The commission also noted that the refusal to issue a digital euro for the European Central Bank could be significant in terms of potentially possible negative consequences.
As we have reported earlier, EPI CEO Says Europe Ready for One Digital Wallet.