The Spanish Central Bank Governor, Pablo Hernández de Cos, recently advocated for a cautious approach to the development of a digital euro. Despite the enthusiasm of some European countries for the idea of a digital euro, Hernández de Cos has expressed his doubts about the project.

The concept of a digital euro was first proposed in 2019 by the European Central Bank (ECB). The idea is to create a digital version of the euro that would be available to all citizens and businesses in the Eurozone. This would allow for faster and more efficient payments, as well as greater financial inclusion.

However, Hernández de Cos believes that the development of a digital euro should be approached with caution. He has raised concerns about the potential security risks associated with such a project. He has also questioned whether the ECB has the necessary expertise to develop and maintain a digital currency.

In addition, Hernández de Cos has expressed his doubts about the potential benefits of a digital euro. He believes that it is not clear whether it would actually lead to greater financial inclusion or faster payments. He has also argued that it could lead to more complexity in the financial system, which could make it harder for people to understand and use.

Despite his doubts, Hernández de Cos has acknowledged that a digital euro could have some advantages. He believes that it could provide an alternative to cash and help reduce the costs associated with international payments. He has also suggested that it could be used to facilitate cross-border payments and help reduce the risk of money laundering.

Overall, Hernández de Cos has advocated for a cautious approach to the development of a digital euro. He believes that further research is needed to determine whether it would actually be beneficial and whether it is feasible. He has also urged the ECB to consider all potential risks before moving forward with the project.