Juan Ayuso, General Director of Operations, Markets and Payment Systems of the Bank of Spain pointed out the various advantages of the new digital currency.
Ayuso highlighted that The current infrastructure of payment systems that allows us to make electronic payments (machines, connections, protocols) is a key piece of the financial system and for which the Eurosystem ensures its solidity and availability”.
“The digital euro would be based on a public and European infrastructure that would strengthen the European financial system and make it more independent from foreign alternatives”he commented.
For the Bank of Spain official, it would contribute to “the offline modality, to make payments in digital euros without the need for an Internet connection and that would be offered together with the online modality. “Offline mode would offer a backup solution in case of network outages and would allow digital payments to be brought to geographic areas where they are not currently an option.”
On the other hand, Ayuso pointed out that the digital euro would be a widely accepted means of payment throughout the eurozone. Regarding security, he assured that the level of privacy of the offline modality would be like that of cash, since only users would be able to see their payment information.
“In the online case, the experience would be equivalent to what we have today with electronic payments: users would access the digital euro through financial institutions and only these would have visibility over their personal information. The Eurosystem would process payments, but without knowing who is behind each transaction”he explained.
Finally, Ayuso revealed an outline of the sheet that the Eurosystem has been following since it started working to define what the digital euro should be like and how to make it reach citizens. “These preparations are multiple and complex in nature, not only for the Eurosystem, but also for policymakers. In this sense, On June 28, the European Commission adopted a proposal for a regulation; Once approved, this regulation will lay the foundations for a possible launch of the digital euro,” commented Ayuso.
“The objective is clear: be able to complement the range of payment solutions available to citizens, including cash. The digital euro would be an additional option,” he added in his comments.
Source: Ambito
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