The Spanish Socialist Labor Party (PSOE) has proposed issuing a national digital currency in response to a reduction in the use of cash.
PSOE has submitted a proposal for the launch of a state cryptocurrency in connection with the reduction in the use of cash. According to the proposal, new payment trends lead to the emergence of “private and unreliable money.” At the same time, the proposal is aimed at “returning money as a public good, more stable and under democratic control.”
According to local newspaper El Economista, ISPR started pushing the measure after the European Central Bank (ECB) announced its intention to create a digital euro. The director of financial innovation at the Spanish Central Bank, Carlos Conesa, said this month that “the decision to launch a digital euro project is getting closer.”
The PSOE believes that the national digital currency will provide more liquidity to the system. According to the statement, “if there is a need for monetary expansion, the national cryptocurrency will allow the use of a more direct mechanism by injecting liquidity directly into current accounts and immediately flowing it into economic activity without intermediaries.”
“The national digital currency will ultimately be controlled by representatives of citizens who set the goals of monetary policy,” states a proposal presented to the Congress of Deputies, the lower house of the Spanish parliament.
The PSOE insists that the project will be implemented “without nationalizing the banking system”. According to the proposal, the state cryptocurrency will put an end to the “privilege” of banks in the field of control over money. State cryptocurrency is “digital public money, intangible and ideal for electronic payments, but in this case, supported by the state, which makes it safe.”
“Now everyone can have an account with their digital money directly at the Central Bank. This privilege is currently limited to banks, ”the proposal says.
Recently, one of the executives of the Spanish bank BBVA expressed concern about the possible launch of the digital euro. He questioned consumer satisfaction with the government’s cryptocurrency. Earlier this month, the ECB released a large-scale report, in which analysts assess the international role of the euro, and also discuss the prospects for issuing digital currencies.
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