Governor Pablo Hernandez de Coz of Spain's central bank asserts that the adoption of a Central Bank Digital Currency (CBDC) is not an immediate priority for users in the jurisdiction. During a speech at the Associacion de Mercados Financieros Annual Convention in Madrid, he outlines the three main reasons behind considering a digital euro: complementing cash usage, innovating current payment systems, and fostering monetary autonomy.
Despite the growing preference for digital payments, concerns persist about digital currencies replacing cash, with a recent study indicating that 60% of the population still considers cash a viable option for various reasons. Hernandez de Coz emphasizes the importance of introducing a CBDC cautiously to prevent potential financial instability and to support monetary policies.
He highlights the benefits of a digital euro, including its potential to spur development in the Eurozone's financial sector and provide an alternative for strategic autonomy, reducing dependence on private issuers. However, he acknowledges concerns such as privacy risks and the need for limits on the amount of digital euro an individual can hold. The governor underscores the importance of collaboration with regional and global counterparts for the successful execution of a digital euro.
