Bank of Finland Coordinating Finnish Instant Payment Solution Compatible with European Standards
The Bank of Finland (BOF) is taking the lead in developing a Finnish instant payment solution that aligns with European standards. This initiative was announced by BOF board member and European Central Bank (ECB) Governing Council member, Tuomas Välimäki, on October 19.
Välimäki emphasized the Bank of Finland’s active promotion of new payment methods and referred to the digital euro as the most significant project in the European payment sector. He stated that introducing a digital euro would allow consumers to use central bank money for electronic payments.
“The possible introduction of a digital euro would give consumers the option of paying with central bank money wherever electronic payment is accepted.”
Välimäki also mentioned that the Bank of Finland and the European Payments Council are collaborating on creating a Finnish instant payment solution. Unlike traditional payment cards, this solution will rely on credit transfer.
Finnish Stablecoin Backed by Euro Released by Membrane Finance
In February 2023, Membrane Finance, a Finnish company, launched EUROe, a fully reserved stablecoin backed by the euro. Juha Viitala, CEO of Membrane Finance, expressed optimism that EUROe would encourage more Europeans to participate in decentralized finance (DeFi) applications and increase their wealth.
Preparation Phase for Digital Euro Project Begins
The governing council of the European Central Bank (ECB) recently announced the start of the “preparation phase” for the digital euro project. This phase will span two years and focus on finalizing regulations for the digital currency and selecting potential issuers.
Hot Take: The Future of Digital Payments in Europe
As Europe moves forward with the development of a digital euro, the Bank of Finland is taking a proactive approach to create a Finnish instant payment solution. By collaborating with the European Payments Council and prioritizing credit transfers over payment cards, Finland aims to align its payment infrastructure with European standards.
The introduction of a digital euro will provide consumers with the convenience of using central bank money for electronic payments wherever accepted. Additionally, the release of EUROe, a stablecoin backed by the euro, demonstrates Finland’s commitment to decentralized finance and its potential to enhance wealth accumulation for Europeans.
The preparation phase for the digital euro project marks an important step in its implementation, allowing for the establishment of necessary regulations and selection of suitable issuers. This signifies Europe’s progress towards a digital future where traditional currencies merge with innovative technology.
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