By George Ward
Queen Máxima of the Netherlands has listed several benefits a CBDC could bring to Europe. According to the Queen, CBDCs will help bring financial inclusion to more people.
Also, she said the authorities could render financial aid to low-income families using CBDC. She added that this would act as a bridge for such families to access other services.
Earlier this week, Queen Maxima discussed CBDCs and their benefits at a conference on a legislative framework for a digital Euro. The European Central Bank (ECB) and the European Commission (EC) organized the event.
Queen Maxima focused mainly on how the Digital Euro could bring financial inclusion. According to her, “underserved groups” will benefit from the digital Euro when it is launched.
Moreover, the Queen argued that conventional financial services are filled with roadblocks. The roadblocks include numerous document requirements, minimum account balances, and high transaction fees.
However, she acknowledged that new financial services are suffering. According to her, this suffering is due to individuals’ low digital capacity, trust, and poor user experience.
Although there are other ways to solve these issues, the Queen asserted that CBDCs could be helpful. CBDCs would encourage financial service providers to increase access and lower cost.
Additionally, CBDCs also provides the benefits of central bank money. These benefits include liquidity, finality, safety, and integrity.
She mentioned the social benefits that households could enjoy. For example, government agencies can offer financial aid to families through a digital Euro. In addition, she noted that low-income households could also enjoy other financial assistance through the CBDC.
Queen Maxima Talks About The Need For Policy Reforms
Nevertheless, she opined that the benefits of CBDCs are not automatic. Besides, there would be policy reforms to address risks and difficulties, the Queen added. Agencies would have to work on digital literacy and combating operational challenges.
“A CBDC design should offer people power over their payment data and sharing of such data. This will support innovations from the Digital Service and Digital Markets Acts,” she opined.
Queen Maxima concluded by saying she is happy with the work of the ECB. She cited the Central bank’s ongoing CBDC consultation and technical work. Finally, she encouraged all stakeholders to keep working on the digital Euro for all Europeans.
Meanwhile, Europe has started the investigative phase of its CBDC project to create a digital Euro. Also, the European Commission has declared that it would present a proposed rule for the CBDC in 2023.