Spain Engages in Critical Debate over Public Digital Euro Amidst Digital Payment Surge
Spain's shift to digital payments raises concerns over privatization, prompting debate on implementing a public digital euro to preserve accessibility and sovereignty.
- • Spain saw online payments nearly triple in 2024 compared to 2019, with significant card and electronic transaction use.
- • Transitioning from cash to private digital payment systems risks loss of free access and European monetary sovereignty.
- • The ECB and national banks initiated the digital euro project in 2019 to maintain public and accessible payment systems.
- • The European Parliament debates the digital euro, with a majority supporting a public rather than private digital euro.
- • Experts caution that without full fiscal and monetary union, digital euro measures might not suffice for currency unification.
Key details
Spain is witnessing a significant shift in payment behaviors, with online transactions in 2024 nearly tripling compared to 2019, driven largely by card payments and electronic alternatives. This digitalization surge is spotlighting the risks of transitioning from traditional cash, a public and free payment method supported by the European Central Bank (ECB), to privatized digital payment systems dominated by companies like Visa and Apple Pay. Such privatization risks loss of European monetary sovereignty and increased costs for consumers due to merchant fees.
To address these challenges, the ECB and national banks have been developing a digital euro since 2019, with regulatory frameworks approved by the European Commission and Council by late 2023. The digital euro aims to emulate cash's public, free, and accessible nature, ensuring payment systems remain a public good, as stressed by ECB's Piero Cipollone.
The European Parliament is currently divided on the issue. While some favor involving the private sector, a majority—including social democrats, left-wing members, and parts of the Italian and German Popular Parties—support a public digital euro aligned with Commission and Council visions. However, Professor Juan Torres warns that without full fiscal and monetary union, these measures may be inadequate for a unified currency.
This ongoing debate highlights critical economic and geopolitical dimensions as Spain and the EU grapple with preserving public payment infrastructures in a digitally evolving landscape.
This article was translated and synthesized from Spanish sources, providing English-speaking readers with local perspectives.
