The European Central Bank (ECB) should rely on cooperation with commercial banks in issuing the digital euro, believes Pablo Urbiola, head of BBVA’s Digital Regulation and Trends division, one of Spain’s largest banks.
He also expressed concern about the issuance of a central bank digital currency (CBDC), questioned the demand for it and urged the ECB to study the issue carefully.
“Given all innovations in the payments market, it is unclear what customer needs the digital euro can meet,” said Urbiola.
In his view, regulators should take into account all opportunities and risks of CBDC.
“It is crucial that the overall framework designed by the ECB be flexible enough to allow private players to develop business models in a competitive space,” said the BBVA executive.
Urbiola added that Spanish banks are ready for the digital euro, and BBVA has participated in CBDC testing alongside 15 other major financial institutions.
“If the digital euro is intended to reduce cash usage, it should be developed as its electronic version — easy to use with basic functionality,” the banker said.
Earlier, the European Data Protection Board urged focus on the privacy of the digital euro.
Earlier, ECB Executive Board member Fabio Panetta stated that central banks have no commercial interest in storing, managing and monetizing user data.
In early June, the ECB warned of problems for central banks in the absence of their own CBDCs.
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