A digital regulation executive at the Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA), Pablo Urbiola, is not sure which consumer demands the digital euro will satisfy.
Urbiola expressed this opinion at the European Banking Federation meeting held last Friday.
“Considering all the innovation that is taking place in the payments market, it is not clear which customer demands a digital euro could fulfil that may not be fulfilled by other initiatives.”
He urged the European Central Bank (ECB) to consider all pros and cons of launching the digital euro, including the different layout possibilities.
“It is essential that the general framework designed by the ECB is flexible enough, and that allows private players to develop business models in a competitive space,” Urbiola explained.
Pablo Urbiola challenged the ECB to position the digital euro in a way that it will solve current financial issues.
“For instance, if a digital euro aims to respond to the decreasing use of cash, it should be designed as an electronic version of cash — that is, simple, easy to use, with basic functionality.”
“it should be able to replicate some of the more advanced functionalities of these initiatives,”