Bank of Spain Teams Up with Cecabank, Abanca and Adhara Blockchain for CBDC Trials
Summary:
The Bank of Spain (BDE) has selected Cecabank, Abanca, and UK-based Adhara Blockchain to take part in experimental trials for the central bank digital currency (CBDC) after receiving 24 applications over the past year. The trials, to be conducted within the next six months, will simulate interbank payments and the settlement of a tokenized bond using a wholesale CBDC. The Spanish CBDC project will function independently from the digital euro initiative. Despite advances in CBDC, the Spanish public shows limited interest, with only 20% willing to incorporate the digital euro into their regular payment methods according to a recent survey.
Twelve months after extending an invitation for collaborators to partake in experimental trials for the central bank digital currency (CBDC), the Bank of Spain (BDE) has made its selection. The BDE publicly disclosed its decision on Jan 3 to partner with Cecabank, Abanca, and Adhara Blockchain for this initiative. The CBDC trial is slated to happen within the coming six months and will aim to simulate the transaction and reconciliation of interbank payments using a tokenized wholesale CBDC as well as through trading different wholesale CBDCs issued by various central banks. Another aspect of the test, executed with the assistance of the consortium Cecabank-Abanca, involves employing the wholesale CBDC for the reconciliation of a hypothetical tokenized bond. Among the 24 applications received by the BDE over the last year, these three companies were selected. While Cecabank and Abanca are both Spanish-based banks, Adhara Blockchain is headquartered in the United Kingdom. The Spanish CBDC project is somewhat distinct as it has been stated to function independently of the digital euro initiative that would take effect across all Eurozone economies if implemented. Meanwhile, Spain's Ministry of Economic Affairs and Digital Transformation has declared its plans to bring into effect the European Union’s Markets in Crypto-Assets regulation, six months ahead of the deadline. Furthermore, in October, the Bank of Spain provided detailed insights about the characteristics and potential applications of the digital euro. Despite these developments, the Spanish population hasn't shown considerable enthusiasm towards the digital euro. As per a survey conducted in October, only a fifth of the respondents affirmed their readiness to incorporate the pan-European CBDC into their routine payment methods, while a majority of 65% indicated reluctance towards its use.
Published At
1/5/2024 1:20:07 PM
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