Thursday, January 27

Congress of Spain pushes to advance with the digital euro

The Congress of Spain approved on December 14 a non-law proposal (NLP) to urge the government to promote the study of the digital euro as a regional public currency in the face of the rise of cryptocurrencies. The proposal had the support of the Spanish Socialist Workers Party (PSOE), United We Can (UP), Citizens (Cs), Basque Nationalist Party (PNV) and the Republican Left of Catalonia (ERC).

The initiative seeks to get Spain involved in the analysis of the digital euro that is led by the Central Bank of Europe. It aims to ensure greater financial stability for the country’s economy, following the growing use of cryptocurrencies, new forms of payments and unbanked money exchange platforms.

As reported by CriptoNoticias, the Central Bank of Europe communicated that the investigation phase of the application of the digital euro will last until July 2023. This has made different actors in Spain raise their opinion on the matter, such as the Central Bank and the Chamber of Congress now.

Controversy in the Spanish congress about the digital euro and cryptocurrencies

Although the provision was approved by receiving the consent of the majority of the deputies, the decision was not unanimous and generated much debate. The congress was divided between 184 deputies in favor, 52 against and 98 abstained. That is, the proposal had 184 votes in favor of 334.

The PSOE defended the digital euro as the possibility of recovering the money under the control of a central bank. His intention is “not to leave anyone unprotected from the digital age”, guaranteeing a universal and secure means of payment, which generated conflicting thoughts mainly in the PP (Popular Party).

Some opponents argued that in the provision the voice of citizens who ask to promote training on cryptocurrencies was not taken into account, considering that with more information, assets can be used safely, grow the industry and make Spain a European benchmark in the ecosystem.

However, the PSOE maintained that cryptocurrencies operate in “shadow banking” systems unrelated to banking regulations and the tracking of operations. Saying that, he expressed his support for currencies created by government entities, such as the digital euro and CBDC (digital currencies issued by central banks).

The PP questioned the PSOE’s proposed provision on the digital euro versus cryptocurrencies.

Marketing plan or need?

The PP called the NLP to make “a marketing plan” by bringing the issue of the digital euro to the table, noting that they want to be on everyone’s lips in Europe for debating the issue at the regional level. He stated that there was no need to present the initiative before the Chamber of Deputies, understanding that the government can become involved in the process of evaluating the currency on a voluntary basis.

In fact, the deputy Patricia Blanquer of the PSOE said “our government is committed to the European strategic agenda and the initiative we propose is aligned with it.” With this in mind, there was no reason to urge him to get involved, the PP explained.

The PSOE clarified that it is not against companies that offer payment solutions. What he is looking for is that there are hybrid models where in the countries there is a public system of circulation of digital money, as well as other private means of payment.

Nowadays in Spain, the PSOE and the PP are the two political parties with the largest number of deputies in congress, each having 120 and 89 representatives. The third party with the highest volume of members is Vox with 52 followers, who abstained from voting for or against.