With the imminent rise of digital currencies, as what some would say is a direct response to the growing popularity of cryptocurrencies in the modern world, Spain is the most recent country to try its hand at potentially implementing a digital currency as well. As such, one political party in Spain, which also happens to be the oldest active party in the country, had reportedly been considering the possibility of adding a digital currency that is also public in nature to Spain before long.

The political party in question is known as the PSOE (Spanish Socialist Workers’ Party), and this party is the main governing political body within the nation. It is the one primarily responsible for backing the new initiative surrounding a potential national digital currency.

PSOE

As the country’s oldest active party as well as the main driving force behind Spain’s Congress of Deputies, the PSOE introduced a new proposition (non-law) for the purposes of launching the aforementioned digital currency program. The launch of this new initiative is also a direct response to Spain’s declining usage of cash and cash-based assets.

PSOE had realized that central bank digital currencies were popping up all over the world, not just in Europe. These CBDCs were thus clearly here to stay and represent the pathway to the future as far as finance is concerned. When it had been revealed that experiments were being conducted regarding the possibility of a digital euro by the European Central Bank, it did not take long for Spain’s oldest political party to consider adding such a digital currency as well.

Spain could greatly benefit from a digital currency

Spain’s Central Bank’s general director of its financial innovation division, Carlos Conesa, had stated that we could see the abovementioned digital euro being launched sooner than expected. Furthermore, as per the details outlined in the proposal, the possibility of Spain introducing a new digital currency on a national level could allow for increased liquidity. It will also enable a much more direct and accessible mechanism via the injection of the liquidity into the current accounts, which would additionally allow for instantaneous transactions as well as the removal of intermediaries.

Lastly, PSOE claims that the digital currency could potentially even finish the so-called ‘privilege’ that various banks tend to exhibit over monetary funds. The project could hence be accomplished without the need for both the banking system as well as credit to be nationalized, the party added.