March 27, 2024
Bank of Spain Collaborates on CBDC Testing
Latest Cryptocurrency News

Bank of Spain Collaborates on CBDC Testing

Spain’s central bank, Banco de España, has finalized partnerships for its central bank digital currency (CBDC) tests, selecting Cecabank, Abanca, and Adhara Blockchain. The wholesale CBDC pilot, scheduled for the next six months, will simulate interbank payments’ processing and settlement using tokenized wholesale CBDCs.

The experiment will also involve the settlement of a simulated tokenized bond using the wholesale CBDC. Among the 24 applications received, these three collaborators were chosen. Cecabank and Abanca are Spanish entities, while Adhara Blockchain is based in the UK.

The Spanish CBDC initiative is distinct from the broader digital euro project, explicitly stated as independent. Additionally, the Spanish Ministry of Economic Affairs and Digital Transformation pledged to implement the European Union’s Markets in Crypto-Assets Regulation six months ahead of the deadline. In October, the Bank of Spain elucidated the digital euro’s nature and applications.

Despite these developments, a survey in October indicated that Spanish citizens showed limited interest in the digital euro. Approximately 65% of respondents expressed a lack of interest in using the pan-European CBDC alongside their regular payment methods.

This pilot program represents a significant step toward testing the functionality and viability of a wholesale CBDC in the Spanish financial landscape. The collaboration with Cecabank, Abanca, and Adhara Blockchain underscores the diverse partnerships involved in shaping the future of digital currencies within Spain’s financial ecosystem.

As central banks globally explore CBDC possibilities, Spain positions itself at the forefront of this technological evolution, independently testing its CBDC in parallel with broader discussions on a digital euro. The outcome of this pilot will likely influence future decisions regarding the adoption and integration of CBDCs in Spain.

Image by M W from Pixabay

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