Spain’s central bank, the Banque de España, has revealed the collaborators selected for the testing phase of its Central Bank Digital Currency (CBDC) initiative, a year after issuing a call for cooperation.
Out of 24 applications received over the past year, the Bank of Spain selected three collaborators. The resolution, published on January 3, announced a partnership with Cecabank, Abanca, and Adhara Blockchain for a six-month pilot of a wholesale CBDC. Cecabank and Abanca are Spanish entities, while Adhara Blockchain is headquartered in the UK.
The testing phase will simulate interbank payment processing and settlement using a single tokenized wholesale CBDC. It will also consider exchanging various wholesale CBDCs issued by different central banks. A consortium of Cecabank and Abanca will use a wholesale CBDC to settle mock tokenized bonds as part of the experiment.
It is important to note that Spain’s CBDC program is different from the Digital Euro project, which, if implemented, would cover all economies of the euro area.
Spain is actively involved in the crypto market, recently introducing the European Union’s Cryptoassets Market Regulation (MiCAR) and working to provide insight into the characteristics and potential applications of a digital euro. .
ECB and Bank of Spain continue their commitment to a digital euro, highlighting the benefits of digitalization in payments and the economy
In October, the Bank of Spain published a document explaining the nature and uses of the digital euro. The bank argued that physical cash formats “do not allow us to take advantage of the full benefits offered by the increasing digitalization of our economy and society.” However, with a digital euro, electronic payments will become an important part of the financial system.
The European Central Bank (ECB) also share A link to a landing page dedicated to basic information about the digital euro. It promises to offer an “easier life” and a “stronger Europe.”
In early October, the ECB Governing Council announced the start of the “preparatory phase” of the Digital Euro project. The work will last for two years and will focus on finalizing the rules for digital currencies and selecting potential issuers.
According to the project calendar published in the text, the preparatory stage will be completed by 2025. However, a final decision on the issuance of a pan-EU CBDC has not yet been taken.
Spaniards’ enthusiasm for a digital euro is limited, but surveys show a majority are reluctant
Despite these regulatory developments, there appears to be limited enthusiasm for a digital euro among the Spanish public.
According to a recent survey conducted by the Bank of Spain, only one-fifth of respondents expressed interest in integrating a pan-European central bank digital currency (CBDC) into their regular payment methods. In contrast, a majority of 65% expressed resistance, raising questions about the widespread acceptance of CBDCs in Spain’s financial industry.
Another recent survey revealed that Spaniards have limited interest in implementing a digital euro, with only 20% expressing willingness to use it in conjunction with regular payment methods.
In recent years, Spain has experienced significant changes in the cryptocurrency landscape, reflecting changes in adoption trends, regulatory strategies and technological advances.
The number of officially registered cryptocurrency companies operating in Spain recorded a significant increase of approximately 56% in 2023. This surge includes both domestic companies and international platforms that have secured licenses as virtual asset service providers operating in the country.
On a global scale, discussions around central bank digital currencies (CBDCs) continue, with Russia preparing to launch its first CBDC pilot involving 13 banks and real customers. Central banks around the world are actively considering CBDCs, making them a pivotal development in the field of stablecoin projects.
Spain’s CBDC collaboration shows initiative, but a background of public skepticism and the ongoing global CBDC exploration highlight challenges in the evolving landscape of digital currencies.