by The European Commission has recently approved a suggestion to fast-track the introduction of instantly paying out Euros. The technology is available, and Europeans should then be able to send and get money instantly. The executive is seeking ways to get the financial industry toward the wider adoption of the solution.
Take Advantage of Technology
The legislative proposal was presented by the European Commission. It seeks to provide all residents and businesses in the bloc with immediate access to get payments sent to them. The service should be secure and within the reach of anyone possessing a bank account within the European Union.
Instant payments are a lot faster and much more convenient than traditional money transfers. It also makes transactions smoother for both businesses and customers while saving them costs.
The Brussels-based executive power argued that it would also release about €200 billion daily locked between transits for investments and consumption. The Commission is planning for the solution to get adopted on a wider scale.
Valdis Dombrovskis is of the view that instant money transfers will let European maintain its competitiveness. It will also position the region to take further advantage of digital innovations. Dombrovskis is the Vice President at Economy that Works for People.
Meanwhile, nine of ten money transfers in the Eurozone are processed slowly. The statistic was revealed by the EU Commissioner for Finance and Capital Market, Mairead McGuiness.
A Euro CBDC?
McGuiness said the transition between these two systems of transfers is like the movement from mail to emails. She believes there is no need for people in the Eurozone to wait long for money transfers. More so, since the technology to achieve instant transfers has been available for a long time.
McGuiness said since it might take a decade to normalize instant transfers, the industry is going in the right direction. She spoke at a press conference recently.
The proposal is an amendment to the Regulation for the Single Euro Payment Area. Payment service providers will be under obligation to support instant transfers. They will also be obliged not to charge fees beyond the traditional transactions.
The payment operators will have to verify that the destination accounts and customers’ names match. They would also do checks to make sure the clients are not under any EU sanction.
The European Commission hopes the amendment would increase competitiveness in the bloc’s payment market. The proposal comes while financial authorities are considering a digital version of the Euro.
