Finland works on instant payments system, embraces digital euro

The Bank of Finland actively promotes the development of new forms of payment.

Bank of Finland (BOF) is coordinating the creation of a Finnish instant payment solution compatible with European standards. BOF board member and member of the Governing Council of the European Central Bank (ECB) Tuomas Välimäki made the announcement on Oct. 19. 

Välimäki revealed that the Bank of Finland is actively promoting the development of new forms of payment. The official called the digital euro “the most topical project” in the European payment sector:

“The possible introduction of a digital euro would give consumers the option of paying with central bank money wherever electronic payment is accepted.”

According to Välimäki, the Bank of Finland and the European Payments Council are also involved in creating a Finnish instant payment solution. This payment solution will be based on credit transfer and not depend on payment card rails. 

Related: International financial group finds gaps in digital euro legislative package

In February 2023, Finnish company Membrane Finance released a fully reserved stablecoin backed by the euro. Membrane Finance CEO Juha Viitala expressed hope that the regulated EUROe coin would encourage more Europeans to grow their wealth through decentralized finance (DeFi) applications.

This week, the governing council of the European Central Bank (ECB) has announced the beginning of the ”preparation phase” for the digital euro project. The preparation phase will last two years and focus on finalizing rules for the digital currency as well as selecting possible issuers.

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