A view shows the logo of the European Central Bank (ECB) in front of its headquarters in Frankfurt, Germany, March 16, 2023. REUTERS/Heiko Becker/File Photo Acquire License Rights
MADRID, Aug 25 (Reuters) – The European Central Bank must measure the impact of the digital euro on the euro-zone banking system before making a final decision on its possible introduction, Spain’s deputy central bank governor Margarita Delgado said on Friday.
The ECB is due to decide in October whether to push ahead with a digital euro to counteract the lack of European payment service providers.
In June, the European Union proposed bringing more competition to the payments sector and legalizing a digital euro, meaning it would have to be accepted as a means of payment.
“Issuing a digital euro should not harm the stability of the financial system,” Delgado said, adding that despite the resilience of the eurozone’s banking sector, “we cannot ignore the elements that could impact the competitiveness and profitability of the banks.” .”
Delgado, who also sits on the ECB’s Supervisory Board and is among the main candidates for the post as the new chief supervisor, said it is important to assess the overall impact of a digital euro on banks’ liquidity as a result of the transfer of funds from banking accounts to digital euro- Purses.
A digital euro would provide a payment solution based on European infrastructure and accepted across the euro area, she said.
Various tools could be used to avoid unintended consequences for financial stability, such as setting a limit of around 3,000 euros ($3,200) on the amount of digital euros users can hold, Delgado said, according to one on the website Speech published by the Bank of Spain.
Electronic payments in the EU grew from €184.2 trillion (US$201.7 trillion) in 2017 to €240 trillion in 2021, accelerated by the COVID-19 pandemic.
($1 = 0.9280 euros)
reporting from Jesus Water; Edited by Andrei Khalip and Mark Heinrich
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