The Spanish Socialist Workers’ Party (PSOE), Spain’s ruling political body, supports a new initiative to create a national digital currency.

The PSOE, Spain’s oldest active party and a leading force in the Chamber of Deputies, has put forward an illegal proposal to launch a national digital currency in response to an ongoing decline in the use of cash, the local news agency El Economista reported on Monday.

The party noted that this proposal is a response to the European Central Bank’s experience with the digital euro. “The decision to launch a digital euro project is very close,” said Carlos Conesa, CEO of Financial Innovation at the Bank of Spain, recently.

According to the proposal, the national digital currency will increase liquidity, “if it is necessary to increase the money supply, it will allow the use of a more direct mechanism, pumping liquidity directly to current accounts, and thus immediately and without intermediaries transferring it to Economic activity. . … ”

The party continued that the Spanish digital currency would “put an end” to “banks’ privilege over money”, noting that the project would be implemented “without nationalizing the banking system or nationalizing credit.”

Today, everyone can have their own digital money account directly with the central bank. They say that at present the franchise is limited to banks. ”

On the subject: The digital euro can take four years, says Christine Lagarde, President of the European Central Bank.

According to El Economista, the PSOE originally proposed creating a national digital currency in mid-June. The party called on the government to set up a group dedicated to assessing the impact of digital currency on the greater economic stability of the Spanish economy and the eurozone as a whole.

As the European Central Bank takes the time to discuss the digital euro, some observers are beginning to question the effectiveness of the virtual currency. Pablo Urbiola, CEO of BBVA, said on Monday that it is not yet clear what consumer demand for the digital euro will meet.

Source: CoinTelegraph