Spain will become a pioneer in the European Union. Jornal El Español reports that the idea is to replicate the Cayman Islands model.
According to the Espanyol, the Spanish government hopes to become the first country in the European Union to have a cryptocurrency linked to the euro. The Spanish Socialist Party (PSOE) has launched an initiative in Parliament for this purpose. It will become the second public cryptocurrency in the world after the Cayman Islands in the Bahamas.
PSOE’s proposal is for the Sanchez government to collaborate with the Bank of Spain to conduct research to evaluate the creation of a “digital euro”, a virtual currency issued by the Bank of Spain.
El Español stated that the goal is “financial stability” in the Eurozone and “restoration of the characteristics of currency as a public good and democratic control.”
The newspaper quoted a report from the Bank for International Settlements in Basel that a large number of financial institutions are already working on creating cryptocurrencies.
The Spanish government stated in a Spanish publication that public cryptocurrencies, unlike private cryptocurrencies (such as Bitcoin), will be “safer” and will not be affected by such large fluctuations in their value. With it, the executives of Pedro Sánchez hope to build an alternative to the payment system beyond the formal banking channels.
PSOE points to China, which is conducting digital RMB pilot projects in some cities across the country.
The model can be a direct digital currency that opens an account with a central bank, or it can be a hybrid system that maintains a private payment system.