Banco de Espaa has announced the selected entities that will participate in the testing phase of its central bank digital currency (CBDC) initiative.
The entities, which include banks, technology providers, and other financial institutions, will help the central bank assess the feasibility of issuing a CBDC.
The testing phase of the CBDC initiative is scheduled to begin in the second half of 2019. Banco de Espaa has not yet announced when the CBDC will be launched.
Bank of Spain has announced partnerships with Cecabank, Abanca, and Adhara Blockchain for the upcoming six-month pilot of the wholesale CBDC. Cecabank and Abanca are Spanish entities, while Adhara Blockchain is headquartered in the United Kingdom.
The testing phase will involve simulating the processing and settlement of interbank payments using a single tokenized wholesale CBDC.
It will also explore the exchange of various wholesale CBDCs issued by different central banks. The consortium of Cecabank and Abanca will use the wholesale CBDC to settle a simulated bond as part of the experiment.
This will help to assess the feasibility of using a wholesale CBDC for this purpose and to understand the benefits and challenges of doing so.
The Spanish Central Bank has announced its plans to develop a Central Bank Digital Currency (CBDC) program, which is distinct from the digital euro project.
The CBDC program is designed to provide a payment system for the country’s retail sector, with a focus on small and medium-sized businesses. The program is expected to be operational in the next few years.
ECB and Bank of Spain Continue Work on Digital Euro, Emphasizing Benefits of Digitalization in Payments and Economy
Spain’s Bank of Spain has published a text explaining the nature and uses of the digital euro. The bank claims that the physical cash format “does not allow for the exploitation of all the advantages offered by the growing digitalization of the economy and society.”
However, the digital euro will make electronic payments a vital piece of the financial system.
This is a big change for the Eurozone, which has been slower to adopt new technologies than other parts of the world.
The Bank of Spain believes that the digital euro will make it easier for people to make electronic payments, which will play a vital role in the economy and society.
The ECB has just announced the launch of a new website dedicated to the digital euro! The website promises an “easier life” and a “stronger Europe” and provides basic information about the digital currency.
The ECB’s governing council announced the beginning of the “preparation phase” for the digital euro project two years ago, and this website is the latest step in making the digital currency a reality.
Although the project calendar published in the text says the preparation phase will finish by 2025, a final decision on issuing a pan-EU CBDC is yet to be made.
This could mean that the completion of the project may be delayed, or that the CBDC may never be released. There is a lot of speculation surrounding this topic, and it will be interesting to see what happens in the coming years.
Spanish Population Shows Limited Enthusiasm for Digital Euro, Surveys Indicate Reluctance Among Majority
The Bank of Spain’s survey results are surprising, given that Spain is one of the countries that has made the most progress in terms of regulatory frameworks for digital currencies. In February 2019,
The Bank of Spain issued a report detailing its plans for regulating digital currencies, which included the introduction of a licensing scheme for digital currency exchanges and a requirement for crypto asset custodians to hold a license from the Bank of Spain.
Despite these regulatory strides, there appears to be limited enthusiasm for the digital euro among the Spanish population. According to a recent survey conducted by the Bank of Spain, only a fifth of respondents expressed willingness to integrate the pan-European Central Bank Digital Currency (CBDC) into their regular payment methods.
In contrast, a majority of 65% indicated reluctance, raising questions about the widespread acceptance of CBDCs in the Spanish financial landscape.
A recent survey by the Bank of Spain shows that, while the overall trend is moving towards increased cryptocurrency adoption, Spaniards remain relatively uninterested in using the digital euro.
Out of the 20% of Spaniards who expressed openness to using the digital euro, only a fraction (5%) claimed they would be likely to use it regularly.
The survey results suggest that there is still some way to go before Spaniards are comfortable using the digital euro as a payment method.
However, as cryptocurrency technology continues to evolve, it is likely that Spaniards will become more open to using digital currencies for transactions.
In the meantime, the Bank of Spain is exploring other ways to promote the digital euro, such as by partnering with financial institutions and technology companies.