A year after calling for partners to test a Central Bank Digital Currency (CBDC), the Bank of Spain has chosen its collaborators. On January 3rd, it announced partnerships with Cecabank, Abanca, and Adhara Blockchain. The pilot, set to occur over the next six months, will simulate the processing and payment of interbank transfers using both a single tokenized CBDC asset and multiple CBDCs issued by different central banks.
Another segment of the experiment, aided by the Cecabank-Abanca consortium, will use CBDC to settle a simulated tokenized bond. The Bank of Spain selected these three companies from 24 applications received last year. Cecabank and Abanca are the partnering banks, while Adhara Blockchain is based in the UK.
The ongoing CBDC project in Spain is somewhat unique as it has been declared independent of the pan-European ‘crypto euro’ project, which would encompass all Eurozone economies if implemented.
Meanwhile, Spain’s Ministry of Economic Affairs and Digital Transformation announced it would implement the EU’s Crypto Asset Markets regulation six months ahead of the deadline. Also, the Bank of Spain released a document in October explaining the nature and uses of a digital euro.
Despite these developments, Spanish citizens have shown little interest in using a digital euro. A survey in October revealed that only 20% would use a pan-European CBDC to complement their regular payment methods, while 65% said they would not use it. As Spain moves forward, many countries continue to explore CBDC programs, with Russia advancing tests of a digital ruble in partnership with 16 banks, potentially leading to a market launch.