Kenne Michael 
Banco de España, the central bank of Spain, has joined other European banking institutions in preparing their clients for the potential advantages of a digital euro.
The central bank published a brief explanation of the nature and applications of the potential central bank digital currency (CBDC) of the European Union on October 19.
The bank asserts that physical cash “does not allow to exploit all the advantages offered by the growing digitalization of the economy and society.”
However, the introduction of the digital euro will make electronic payments an integral component of the financial system.
The authors emphasize the ability to make offline payments with the digital euro, emphasizing its cash-like level of privacy.
They also express concerns that in the online form, user data would continue to be visible only to their respective financial institutions rather than to Eurosystem, the CBDC infrastructure provider.
According to the published project schedule, the current “preparation phase,” which began on October 18, will conclude in 2025.
However, a final judgment regarding the issuance of a pan-EU CBDC has not yet been made.
Recently, the Bank of Finland expressed a similar disposition toward the digital euro.
Tuomas Valimaki, a member of the board, referred to it as “the most topical project” in the European payment sector.
The European Central Bank (ECB) published a link to a landing page containing fundamental information about the digital euro on October 25.
It guarantees an “easier life” and a “stronger Europe.”
Furthermore, the ECB’s governing council declared the start of the “preparation phase” for the digital euro project earlier in October.
It will last two years and focus on finalizing digital currency rules and selecting potential issuers.