The world’s major powers have begun testing to launch their digital currencies. Now it is the turn of the Spanish banks, which have started testing with the digital euro.
Digital money is a reality that has been with us for more than 10 years. There has been a lot of speculation about the disappearance of the banks, I myself speak about it in my book “The Empire of Bitcoin”.
We have seen how in Spain they have been closing offices and adapting their services to new technologies. In these years we have seen how banks have been creating apps, new access systems for online banking and new payment systems. Now it is time for digital money, if not they can be left behind in the new form of commerce of the next decades.
Digital Euro: Iberpay gives the kick
Iberpay will be in charge of centralizing the project. Iberpay is a Spanish company in which the most important banks in Spain participate and has already launched payment projects such as Bizum, which in Spain has millions of users.
In principle, getting the digital euro was supposed to be done in August, but due to the Covid problems, the proof of concept was left for this week. France has already started testing the digital euro and Spain does not want to be less.
The Iberpay company, which would be the owner of the funds, will issue some tokens. The financial entities would distribute them to their clients and it would be the Iberpay company that would back up said funds. The ECB (European Central Bank) will be the one who issues the digital euros as it does with fiduciary euros.
The project will be started by the 5 large Spanish banks: Caixabank, Santander, BBVA, Bankia and Banco Sabadell. According to each digital euro that is issued, a physical euro disappears, the value of the digital euro is exactly the same as a physical or fiat euro.
The European Central Bank will issue the digital Euro
The ECB (European Central Bank) would be the issuer of digital euros as we have said before. If we enter its official website we can see that on April 28, 2020, it made a statement that it was going to study the issuance of a digital euro, and that a high-level group would study the advantages and disadvantages of the introduction of a digital currency .
This is certainly great news for Bitcoin and other cryptocurrencies. That the money regulatory bodies bet on a massive form of payment just like crypto is to accept them too.
Although the digital euro is a double-edged sword, since we are assailed by doubts and questions such as, will I no longer have anonymity? Will finance know my accounts with digital euros? Will I still be controlled by the banks? Will I have to continue placing my trust in the banks?
Collateral damage and benefits of adopting the digital Euro
Let’s not forget that cryptocurrencies like Bitcoin They are based on the trust of those who have it in an increasingly extensive community and that you are the owner of your money, you have privacy and do not depend on a third party, economic freedom in capital letters.
The digital euro may be good for collateral mass adoption of cryptocurrencies and will save banks by giving them new meaning for years to come. However, this can lead to the worst-case scenario in the prohibition of any other cryptocurrency other than the official ones, and in the best of cases, a balanced coexistence of all.
In favor of the digital euro with respect to other cryptocurrencies, I have to say that using it would imply, in theory, greater security of your funds, since it would be the government agencies again those that guarantee your money, for those who trust them more than in a community like it is Bitcoin
It would also imply a lower possibility of the cryptocurrency’s disappearance, a greater investment in infrastructure and cybersecurity to protect it from attacks by cybercriminals, and perhaps a possibility of retrocession of transfers in the event of a mistake, since customers will surely be known.
To have Bitcoin and therefore managing your money is a responsibility and surely there are people who prefer to put that responsibility in the hands of a third party.
To conclude, comment that in 2020 due to the confinements by COVID, as indicated by the ECB, the need for cash has become more unpredictable. It has reached 19,000 million euros in circulation, being the historical maximum. Although the credit card is being used more and more, it is still a form of payment on par.
What do you think that Spanish banks start with the digital Euro test? Let us know your thoughts in the comment box.