Bank of Spain Governor Addresses Concerns Over Digital Euro

According to CoinDesk, Bank of Spain Governor Pablo Hernández de Cos stated that there is no pressing need for a digital euro in the European Union due to the region's highly efficient payment systems. During a speech on Monday, Hernández de Cos acknowledged the importance of the European Central Bank's (ECB) digital euro project but emphasized that central bankers are proceeding with caution due to financial and social concerns, as well as conspiracy theories about the digital currency being used to strengthen state control. The ECB's central bank digital currency (CBDC) project, which aims to issue a digital version of the euro for retail payments, has faced political opposition and slowed down with legislative proposals earlier this year. Hernández de Cos believes that a CBDC should be designed to mitigate any risk to financial stability and monetary policy. Despite the concerns, the governor stated that work on a digital euro should continue, with the project currently in a preparation phase. ECB Chief Christine Lagarde has previously said that a digital euro is at least two years away.