The Spanish socialist party (PSOE), proposes to examine how a digital euro would work as a public digital currency.
PSOE holds the country’s presidency and is the leading force in the Chamber of Deputies, presented a Non-Law Proposal (NLP). It will promote the launch of national digital currency to decrease the use of physical cash, according to an official document cited by the Spanish newspaper El Economista.
The new payment trends cause “purely private and more insecure money,” according to the political party. The party’s proposal commits that “the recovery of money as a public good, more stable and under democratic control.”
The PSOE promotes this measure after the European central bank (ECB) announced its intention to create a digital Euro.
Deputy general director of Financial Innovation and Market Infrastructure of Bank of Spain, Carlos Conesa said this month, “the decision to launch a project on the digital Euro is very close.” the report added.
“It would be subject, as at present, in the last instance to the control by the representative of the citizenship, who set their monetary policy objectives,” says NLP presented in Congress.
The PSOE insists that they can achieve this “without the nationalization of the banking system or the nationalization of credit.”
Effects of Digital Euro on Banking privileges
The socialist’s Proposal Criticizes that this digital currency would end the “privilege” of banks over money. They define this cryptocurrency as public digital money, intangible and perfectly usable to make electronic payments. However, the backing of the state makes it safe money.
Best opinion of the socialists says, “at present, it is perfectly feasible for each individual to have his own account with his digital money directly at the central bank. A privilege, for the moment, restricted to banks.”
Also Read: Bank of Israel to Use Ethereum tech for Digital Shekel
Carlos Conesa affirms, the issuance of digital currency “is not a response to a specific threat” or cryptocurrencies development. The CNMV and Bank of Spain have already launched alerts as an investment tool.
Recently, there is a race between the central bank to launch its own digital currency. Right now, 80% of the central bank is working on CBDC.
