We are seeking participation in an experimental test of a Wholesale Central Bank Digital Currency (CBDC). The agency said the new program is unrelated to current research into the potential of a digital euro and aims to explore the true potential and benefits of using CBDCs in the field.
Bank of Spain to experiment with its own CBDC
The Bank of Spain recently announced that it will launch its own pilot program with a wholesale CBDC. A document , issued on on December 5, announced this digital token program and explained that the agency is seeking the cooperation of companies within the industry to develop proposals on the matter. increase. The
agency clarified that the program is not related to the EU’s ongoing work on researching a digital euro. The purpose of this new program is to identify the feasibility of using such a currency and test the benefits it brings to the payment process.
These proposals will be received by the banks by January 31st, when they will begin evaluating each proposal for possible selection. The selected proposals are due for completion on December 29, 2023 and must be implemented within nine months from April 3. However, banks may issue extensions depending on several factors. documents through a selection process.
Relatedly, Banco de Spain also has an interest in wholesale currencies. To assist in the settlement of financial transactions between banking institutions.
The program defined in the public document describing the experiment presents three key tasks that must be completed. Simulating trading using a wholesale CBDC, experimenting with a combination of CBDC and financial asset securitization, and analyzing the potential advantages and disadvantages of implementing a wholesale CBDC compared to traditional methods.
The agency did not elaborate on the future of a fictitious wholesale currency in Spain or its intention to introduce a similar currency for interbank transactions.
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