Spanish Socialist Workers’ Party signs public initiative on digital currency
The Spanish Socialist Workers’ Party (PSOE), the ruling political body in Spain, supports a new national digital currency initiative.
The PSOE, Spain’s oldest active party and the ruling force of the Congress of Deputies, has presented a non-legal proposal to launch a national digital currency in response to the continued decline in the use of cash, the report said. local news agency El Economista. reported Monday.
The party noted that the proposal comes in response to the experiences of the European Central Bank with a digital euro. Carlos Conesa, managing director of the financial innovation division of the Spanish Central Bank, recently said that “the decision to launch a project on the digital euro is very near”.
According to the proposal, a national digital currency would allow higher liquidity “In the event that monetary expansion is necessary, it allows a more direct mechanism, by injecting liquidity directly into current accounts and thus transferring them immediately and without intermediaries to the economic activity. “
The party went on to say that a Spanish digital currency “would end the banks’ ‘privilege’ over money,” noting that the project would be carried out “without the nationalization of the banking system or the nationalization of credit”.
“Right now, it is perfectly possible that each individual can have their own account with their digital currency directly at the central bank. A privilege, for the moment, reserved for banks ”, would have indicated the proposal.
Related: Digital euro could take four years, says ECB President Christine Lagarde
According to El Economista, the PSOE initially offers creation of a national digital currency in mid-June. The party urged the government to create a dedicated group to assess the effect of the digital currency on the greater financial stability of the Spanish economy and the euro area as a whole.
As the European Central Bank takes its time deliberating on the digital euro, some observers are beginning to doubt the effectiveness of the hypothetical currency. Pablo Urbiola, a BBVA executive, argued on Monday that it was not yet clear what kind of customer demand the digital euro is supposed to meet.