Discover how Deputy Governor Margarita Delgado delves into the synergy between the digital euro and private payment services, outlining their potential coexistence and impact on competition. Explore the regulatory approach to ensure inclusivity and accessibility in the evolving landscape of digital payments.
Margarita Delgado, Deputy Governor of the Bank of Spain, has shared insights on the interaction between private payment solutions and the digital euro, as envisioned by the European Commission's proposed digital euro legislative plan. Speaking in Pamplona on August 25, Delgado highlighted the potential for the digital euro to address cross-border payment barriers, reduce costs for businesses using private payment service providers (PSPs), and promote competition among PSPs in Europe.
Delgado expressed confidence that both the digital euro and private payment solutions can coexist, fostering new pan-European payment and financial services by the private sector. Acknowledging the challenges posed by central bank digital currencies and stablecoins developed elsewhere, she emphasized the importance of the digital euro's introduction to mitigate these concerns.
However, Delgado underlined the need to ensure financial security before launching the digital euro, particularly by addressing common deposit insurance and the establishment of a common supervisory and resolution authority under the European deposit insurance scheme.
The European Central Bank (ECB) envisions implementing the digital euro within the eurozone before expanding its availability to non-eurozone regions. This expansion is expected to create opportunities for private PSPs to serve as intermediaries for retail use of the digital euro outside the eurozone.
The ECB's regulatory approach for PSPs includes the requirement for these providers to make the digital euro accessible to a broader population. Furthermore, PSPs will be mandated to offer a physical payment card for the digital euro. As part of the proposed regulation, PSPs will not be permitted to charge fees for basic services or impose contractual agreements as prerequisites for accessing the digital euro. They will also be obligated to offer onboarding support, including human interaction, to assist vulnerable groups in the adoption and use of the digital euro.
Delgado's insights emphasize the intricate relationship between the digital euro and private payment solutions, highlighting the potential for healthy competition and enhanced financial services accessibility across Europe.
(DEREK ANDERSEN, CoinTelegraph, 2023)