Digital Euro Offers Convenient Payment Method But Not an Investment Object, Says Bank of Finland Member
Europeans Can Pay with Central Bank Money, Says Bank of Finland
A digital euro could soon become a reality, allowing consumers in Europe to make secure and free electronic payments using central bank money. However, Bank of Finland board member Tuomas Valimaki has clarified that the digital euro should not be treated as an investment object like cryptocurrencies.
ECB’s Intention for Digital Euro
The European Central Bank (ECB) is taking significant steps towards launching the digital euro. The aim is to provide individuals in the eurozone with the opportunity to have a digital euro account, with a cap on the account balance. The intention is to develop a convenient payment method rather than divert household savings from commercial banks to the euro system.
Finland Leads the Way in Payment Digitalisation
Finland is leading the charge in payment digitalisation among eurozone member countries. The country boasts the highest usage of electronic payment methods, including card and mobile transfers. Despite the abundance of payment options, Valimaki believes that power is concentrated in a few non-European card companies, such as Visa and Mastercard, which poses resilience concerns.
Bank of Finland’s Solution for Payment Digitalisation
The Bank of Finland is planning to introduce an independent Finnish instant payment solution that aligns with European standards. This solution will be free from the reliance on payment cards, providing users with more flexibility and convenience.
By rewriting the article, we can provide a more detailed and enriched perspective on the digital euro and its implications for European consumers. The Bank of Finland emphasizes that the digital euro is primarily designed to offer a convenient payment method rather than serve as an investment avenue. Finland’s proactive approach to payment digitalisation highlights the importance of staying ahead in the ever-evolving financial landscape. The Bank of Finland’s forthcoming instant payment solution aims to address concerns regarding the dominance of non-European card companies, ensuring a more resilient and efficient payment system for Finnish consumers.
