Bank of Finland Spearheads Development of Finnish Instant Payment Solution
The Bank of Finland (BOF) is taking the lead in developing a Finnish instant payment solution that aligns with European standards. During a recent event, Tuomas Välimäki, a member of the Governing Council of the European Central Bank (ECB) and a board member of the Bank of Finland, addressed the active role that the BOF is playing in fostering innovative payment methods.
Digital Euro: A Significant Ongoing Project
Välimäki acknowledged the diminishing use of cash in Finland and Europe, emphasizing the importance of ensuring continued access for those who rely on cash for their day-to-day financial activities. He highlighted the European Commission’s initiative to safeguard the role of cash, while also recognizing the significance of ongoing projects like the digital euro in European payment systems.
Bank of Finland Highlights Digital Euro’s Role in Europe’s Payment Landscape
Välimäki stressed that the digital euro would reinforce Europe’s strategic autonomy and stimulate competition within the eurozone. The introduction of the digital euro could enhance operational security and improve competitive conditions as cash usage declines. He clarified that the digital euro is primarily intended as a medium of exchange, not an investment vehicle, and that its usage may be subject to restrictions to ensure financial stability.
Advancement of Alternative Payment Options Urged by Bank of Finland
Välimäki emphasized the urgency of advancing alternative payment options in Finland, particularly mobile phone-based instant payments. To drive adoption, a working group led by the Bank of Finland and involving banks and trade operators has been established to formulate a European-compatible express payment solution framework. The goal is to establish a new real-time payment method that offers a uniform experience for customers across all banks and supports the digital euro if it is issued.
Hot Take: Bank of Finland Leads the Way in Developing Finnish Instant Payment Solution
The Bank of Finland is at the forefront of developing an instant payment solution that aligns with European standards. With the diminishing use of cash, the digital euro project takes center stage as a significant ongoing initiative in European payment systems. The Bank of Finland recognizes the importance of ensuring access to cash while also emphasizing the need for diversified payment infrastructure and alternative options. By spearheading the development of a Finnish instant payment solution and urging advancements in alternative payment methods, the Bank of Finland aims to create a more efficient, secure, and competitive payment landscape in Europe.
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