[Blockchain Today Reporter Jeong Seung-won] An executive from the digital regulation team of the Argentine Bank of Bilbao Vizcaya (BBVA) argued that the European Central Bank should rely on public-private partnerships to issue digital euros.
As Cointelegraph reported, Pablo Urbiola of the BBVA Digital Regulatory Team has reportedly asked European financial authorities to closely examine the possibility of issuing a Central Bank Digital Currency (CBDC).
“Given all the innovations taking place in the payment market, it is not clear whether customers can demand a digital euro that no other initiatives can meet,” Ur Viola said at a seminar at the Federation of European Banks on the 25th (local time). “The need for central bank digital currency (CBDC) is growing, but it is not clear exactly whether the digital euro should meet the needs of our customers.”
Management emphasized that the European Central Bank should consider all the opportunities and risks of the digital euro by considering the various design options. “It is essential that the generic framework designed by the European Central Bank (ECB) be flexible enough and allow private companies to develop business models in a competitive space,” said Ur Viola.
He said the European Central Bank wants to solve the myriad challenges associated with the digital euro. “For example, if the digital euro is to counter the current declining cash flow, it should be designed as a simple, easy-to-use electronic cash version with basic functions,” Urviola said. If we aim to do that, we should be able to replicate some of the advanced features of these initiatives.”
Management said the Spanish bank is preparing a digital euro and the Argentinean Bank of Bilbao Vizcaya, along with 15 other major banks, has participated in a preliminary examination of the European Central Bank’s digital currency issuance.
Ur Viola’s remarks came shortly after the European Central Bank declared that the digital euro could be important in competing with ‘artificial currencies’ in cross-border payments. In early June, the European Central Bank published its annual Euro commentary, raising concerns about the rise of artificial currencies led by foreign tech companies, apparently referring to Facebook’s DM project.
contact@blockcast.cc
