A view shows the logo of the European Central Bank (ECB) outside its headquarters in Frankfurt, Germany March 16, 2023. REUTERS/Heiko Becker/File Photo Acquire Licensing Rights
MADRID, Aug 25 (Reuters) – The European Central Bank needs to identify and measure the impact of the digital euro on the euro zone’s banking system before any final decision on its potential launch, Spain’s deputy central bank governor Margarita Delgado said on Friday.
The ECB is due to decide in October whether to push ahead with a digital euro, which aims to tackle a lack of European payment services providers.
In June, the European Union proposed injecting more competition into the payments sector, giving legal backing to a digital euro, meaning it would have to be accepted as a form of payment.
“The issuance of a digital euro should not be in detriment to the stability of the financial system,” Delgado said, adding that despite the robustness of the euro zone’s banking sector, “we cannot ignore the elements that might impact the competitiveness and profitability of the banks.”
Delgado, who also sits on the ECB’s supervisory board and is among the main contenders to become its new supervisory chief, said it was important to gauge the overall impact of digital euro on banks’ liquidity as a result of the transfer of money from banking accounts to digital euro wallets.
Reporting by Jesús Aguado; editing by Andrei Khalip
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