In a strategic move toward digital innovation, Spain’s central bank, Banco de España, has finalized its partnerships a year after issuing an open call for collaborators interested in participating in central bank digital currency (CBDC) trials.
On January 3, the central bank formally announced its collaboration with Cecabank, Abanca, and Adhara Blockchain, marking a significant step in the nation’s exploration of CBDC implementation.
Collaborative Testing for Wholesale CBDC
The upcoming six months will witness the initiation of the pilot phase for the wholesale CBDC. This testing phase will focus on simulating the processing and settlement of interbank payments. The methodology involves utilizing a single tokenized wholesale CBDC and exchanging various wholesale CBDCs issued by diverse central banks.
As part of the experimental procedures conducted with the Cecabank-Abanca consortium, the wholesale CBDC will play a pivotal role in settling a simulated tokenized bond, providing valuable insights into its practical applications.
Selection of Key Collaborators
Out of the 24 applications received by the central bank over the past year, three companies emerged as key collaborators for this groundbreaking initiative. Both Cecabank and Abanca, local entities, join forces with the UK-based Adhara Blockchain, forming a consortium aimed at driving innovation in CBDC development.
Spanish CBDC Independence
A noteworthy aspect of the Spanish CBDC program is its explicit declaration of independence from the broader digital euro project, designed to encompass all economies within the eurozone if implemented. This independence underscores Spain’s commitment to charting its unique path in the realm of digital currencies.
Regulatory Commitment
Simultaneously, the Spanish Ministry of Economic Affairs and Digital Transformation announced its proactive stance by committing to implementing the European Union’s Markets in Crypto-Assets Regulation six months ahead of the stipulated deadline. This regulatory move aligns with Spain’s dedication to fostering a secure and compliant digital financial landscape.
Unveiling the Digital Euro
In October, the Bank of Spain unveiled a comprehensive text elucidating the nature and potential uses of the digital euro. Despite this initiative, a recent survey in October revealed that 65% of respondents from Spain exhibited a lack of significant interest in incorporating the pan-European CBDC into their regular payment methods.
