Spanish MPs submit proposal to accelerate the creation of a digital euro – economy Bitcoin News
A group of Spanish MPs has tabled a proposal to speed up the introduction of a digital euro. The proposal presented on June 8th calls for a group to be set up to investigate the introduction of a digital currency in the euro area. This study group, if set up, would be supported by the Bank of Spain. However, the issue of a digital euro is still being investigated by the European Central Bank (ECB).
Spanish MPs submit proposal to accelerate the digital euro
A group of Spanish MPs from the Socialist Party tabled a bill to speed up the issuance of a digital euro. The proposal, submitted on June 8, calls on the central government to set up a study group to examine the benefits of adopting such a currency. The Bank of Spain would assist this Central Bank Digital Currency Study Group (CBDC) in this task.
The proposal identifies four motives for advancing this research: First, the advances in digitization technologies that make these new forms of payment possible. Second, setting up a CBDC would slow down the use of cryptocurrencies and other payment methods disconnected from the banking system. These methods are difficult to control and challenge.
Another motive mentioned has to do with financial inclusion. The proposal says that a central bank digital currency would improve financial inclusion as the proliferation of smartphones would help people purchase financial products directly. The fourth motif names the impending disappearance of cash for health and public cost reasons.
However, experts argue that Spain may not have the legal authority to issue a digital euro only on Spanish land. This was explained by Alfredo Muñoz, professor of commercial law at the University of Madrid. According to him:
Spain does not have the competence to decide whether to issue euros digitally or not. The EU has “exclusive competence” in the monetary policy of the member states.
The digital euro is still being studied
The proposal put forward by these Spanish MPs seems contradictory given that a digital euro is still under investigation. The ECB has stated that this type of electronic currency is still in the experimental phase. It is made clear on the official Euro digital website that the institution will take a decision on this issue in the middle of this year.
However, other voices have provided more specific information on the matter. Christine Lagarde, President of the European Central Bank, for example, said the digital euro could arrive in five years. She stressed that she had to get it right because the task was not trivial.
Other countries like the Bahamas and China have already tested their own CBDCs and are gradually introducing them. But Spain, as part of the EU, has to wait for the decision of the European Central Bank.
What do you think of the Spanish MPs’ no-law proposal? Let us know in the comments section below.
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