ECB’s Digital Euro: A Payment Method, Not an Investment
The European Central Bank (ECB) is actively working on launching a digital version of the euro, aiming to offer citizens across the eurozone secure and free electronic payment options. However, according to Tuomas Valimaki, a board member of the Bank of Finland, it’s important not to consider the digital euro as an investment opportunity similar to cryptocurrencies.
Designed for Payments, Not Investments
Valimaki stressed that the ECB’s primary intention is to facilitate individuals, not companies, in having digital euro accounts, with a predefined balance limit. The core purpose of the digital euro is to serve as a payment method and not to move household savings from commercial banks to the euro system.
Digitalization of Payments in Finland
Valimaki highlighted that Finland is a leader in the digitalization of payments among eurozone countries, with extensive use of electronic payment methods, including cards and mobile transfers. However, he noted that despite the many options available, payment methods have become less diverse. He voiced concerns about the concentration of power in the hands of a few card companies, particularly Visa and Mastercard, headquartered outside Europe, who control digital payments.
Bank of Finland’s Independent Payment Solution
In addition to the digital euro development, the Bank of Finland is planning to introduce an independent Finnish instant payment solution. This solution will not rely on payment cards and will be compatible with European standards. This move aims to enhance payment diversity and reduce reliance on dominant card companies.
The impending arrival of the digital euro is set to revolutionize how European citizens conduct electronic payments, enhancing both security and accessibility. It’s crucial to emphasize that it does not serve as an investment vehicle but rather as a practical means for conducting transactions.