Spanish Congress pushes to move forward with the digital euro – CVBJ
The Spanish Congress on December 14 approved 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), the Basque Nationalist Party (PNV) and the Republican Left of Catalonia (ERC).
The initiative aims to involve Spain in the analysis of the digital euro carried out by the Central Bank of Europe. It aims to ensure greater financial stability for the country’s economy, following the increasing use of cryptocurrencies, new forms of payment and non-bank money exchange platforms.
As reported by CriptoNoticias, the Central Bank of Europe has communicated that the investigation phase on the application of the digital euro will last until July 2023. This prompted various actors in Spain to speak out on the issue, such as the Central Bank and the House. of Congress now.
Controversy at the Spanish congress on the digital euro and crypto-currencies
Although the provision was approved with the consent of a majority of MPs, the decision was not unanimous and sparked much debate. The congress was divided between 184 deputies for, 52 against and 98 abstentions. That is, the proposal received 184 votes to 334.
The PSOE defended the digital euro as the possibility of recovering money under the control of a central bank. Its intention is to “leave no one without protection in the face of the digital age”, guaranteeing a universal and secure means of payment, which has given rise to contradictory reflections mainly within the PP (Popular Party).
Some opponents have argued that in the provision the voice of citizens asking to promote training on cryptocurrencies has not been taken into account, considering that with more information, the assets can be used safely, develop the industry and make Spain a European benchmark in the ecosystem.
However, the PSOE maintained that cryptocurrencies operate in âshadow bankingâ systems unrelated to banking regulation and transaction monitoring. In saying this, he expressed his support for currencies created by government entities, such as the digital euro and the CBDC (digital currencies issued by central banks).
The PP questioned the provision proposed by the PSOE on the digital euro versus cryptocurrencies.
Marketing plan or need?
The PP called on the PNL 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 to discuss the issue at regional level. He said there was no need to present the initiative to the Chamber of Deputies, on the understanding that the government can get involved in the currency valuation process on a voluntary basis.
Indeed, the deputy Patricia Blanquer of the PSOE declared that “our government is attached to the European strategic agenda and the initiative which we propose is aligned with it”. With that in mind, there was no reason to push him to get involved, explained the PP.
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 countries there is a public system for circulating 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 highest number of congress deputies, each having 120 and 89 representatives. The third party with the most membership is Vox with 52 followers, who abstained from voting for or against.