The Bank of Finland (BOF) is actively promoting the development of new payment solutions, including a Finnish instant payment system compatible with European standards. The BOF's board member, Tuomas Välimäki, considers the digital euro as the most topical project in the European payment sector, emphasizing its potential to offer consumers the option of using central bank money for electronic payments.
The Bank of Finland (BOF) is taking the lead in developing a Finnish instant payment solution that complies with European standards. Announced by Tuomas Välimäki, BOF board member and member of the Governing Council of the European Central Bank (ECB), this initiative underlines the BOF's active promotion of new payment methods.
Välimäki referred to the digital euro as "the most topical project" in the European payment sector, highlighting the potential of introducing a digital euro for consumers. This digital currency could enable payments using central bank money wherever electronic payment methods are accepted, providing an alternative to traditional payment systems.
In addition to its support for the digital euro, the Bank of Finland, in collaboration with the European Payments Council, is working on the development of a Finnish instant payment solution. This solution will be based on credit transfer, making it independent of payment card rails, which could enhance payment flexibility for users.
The move toward digital payment innovations aligns with broader developments in the European Central Bank. On October 18, the ECB's governing council announced the commencement of the "preparation phase" for the digital euro project. This two-year phase will focus on finalizing the regulatory framework for the digital currency and selecting potential issuers.
The financial industry in Finland has also seen other innovations, such as the release of EUROe, a stablecoin fully backed by the euro, by Finnish company Membrane Finance in February 2023. Membrane Finance's CEO, Juha Viitala, expressed hopes that EUROe would encourage more Europeans to explore decentralized finance (DeFi) applications and grow their wealth.
As digital payment solutions continue to evolve, initiatives led by central banks, like the digital euro and instant payment systems, aim to provide secure and efficient alternatives for consumers and businesses in the digital age. The active role played by the Bank of Finland in these developments reflects its commitment to embracing modern payment technologies while ensuring compatibility with European standards.
(DAVID ATTLEE, COINTELEGRAPH, 2023)