Spain Launches CBDC Research Project with 3 Partners
Date: 2024-01-09 Author: Dima Zakharov Categories: IN WORLD
Partnership and Project Scope
Cecabank and Abanca, renowned Spanish financial institutions, will collaborate with the British firm Adhara Blockchain, adding an international dimension to the project. The pilot project will simulate the processing and settlement of interbank payments using tokenized wholesale CBDC. This phase aims to explore the efficiency and security of digital currencies in financial transactions.
The cooperation is geared towards testing the exchange of wholesale CBDCs from various central banks—a concept critical for the future of international financial operations. Additionally, the Cecabank-Abanca consortium will conduct a simulated bond settlement using wholesale CBDC, which is crucial for understanding the practical application of digital currencies in existing financial systems.
Spain's Independent Approach to CBDC Research
Despite Spain's participation in the European Union, this CBDC pilot project underscores its independent approach to studying digital currencies. While the Spanish initiative complies with EU regulations and impending crypto market regulations, it differs from the digital euro project. This division highlights the diverse and exploratory approach of EU member states towards digital currency.
The project arises at a time when public opinion in Spain remains cautious about digital currencies. A recent survey revealed that a significant portion of the Spanish population is still unconvinced about the practicality and necessity of a digital euro.
Consequences and Future Prospects
This pilot project marks a pivotal step in the development of digital currencies, particularly for the banking sector. By focusing on wholesale CBDCs, the Bank of Spain is exploring new horizons in digital finance, potentially setting a precedent for other central banks. The results of this pilot project could significantly influence the direction of digital currency adoption not only in Spain but across the entire EU.
Furthermore, the collaboration with a British firm like Adhara Blockchain highlights the international implications of Spain's CBDC initiative. The success of this project could pave the way for expanded cross-border partnerships and technological exchanges in the realm of digital currencies.
