Caixa Bank along with four more organizations has been opted by the European Central Bank (ECB) for working together to develop a model of a digital euro. ECB launched this initiative intended to choose entities to create technical strategies linked with the development of European digital currency. Caixa Bank is the only European Bank chosen for the initiative, and it will be held accountable for developing a model for P2P (peer-to-peer) online payment leveraging the euro in digital form.
From September Caixa Bank will create a mobile application to replicate the process required during the online transfer of digital euros to and from the accounts of individuals.
The ECB viewed CaixaBank’s considerable experience and leadership in the field of innovation and payment methods, as well as the quality of its services, internal capacity to create such initiatives, and market coverage, as key factors throughout the selection process.
In April of this year, the ECB issued a request for payment service providers, banks, and other key market participants to collaborate on the development of prototypes for digital euro payment services aimed at users. Fifty-four businesses answered, ranging from banks to international technology firms.
The other four companies chosen for this stage, in addition to CaixaBank, will create prototypes for other digital euro user interfaces, such as offline P2P payments, POS payments, and e-commerce payments.
The ECB is actively researching the design of a digital euro. If a digital euro is produced, it will not replace cash or other existing payment methods but will instead supplement them by becoming another payment option, thereby promoting financial inclusion and accessibility.