The six-month pilot program will simulate interbank payment processing and settlement using a single tokenized wholesale CBDC and other foreign CBDCs issued by different central banks.
The Bank of Spain has selected Cecabank, Abanca, and Adhara Blockchain for its wholesale central bank digital currency (CBDC) pilot, a strategic move to explore the benefits and feasibility of digital currencies in the banking sector, according to a Jan. 3 announcement.
The six-month pilot program will simulate interbank payment processing and settlement using a single tokenized wholesale CBDC and other foreign CBDCs issued by different central banks.
Partner
The inclusion of the three partners is said to be the result of an extensive screening process.
Cecabank and Abanca are well-known Spanish banks that bring local financial expertise to the project. Adhara Blockchain is a UK-based company that contributes its global experience in blockchain technology and has previously worked with central banks in other countries on digital currency exploration. The collaboration of these entities combines local knowledge and international technical expertise.
An important aspect of the experiment is the use of a simulated wholesale CBDC to settle a tokenized bond conducted by the Cecabank-Abanca consortium. This part of the pilot will provide valuable insights into the practical application of CBDC in complex financial operations.
The Bank of Spain’s pilot program is separate from the eurozone-wide digital euro project. It focuses specifically on the digitization of wholesale payments between banks, rather than the creation of a universal digital currency for public use.
Public disinterest
However, public interest and acceptance are critical to the wider adoption of digital currencies.
Surveys conducted in Spain have shown a tepid public reaction to the use of a digital euro. An October survey showed that 65% of Spanish respondents were unwilling to use a pan-European CBDC outside of their regular payment methods.
The data suggests that while financial institutions and central banks are keen to explore digital currencies, there is still much work to be done in terms of public outreach and education to increase acceptance and understanding of these new financial technologies.
International regulators such as the International Monetary Fund and the Bank for International Settlements are bullish on the idea of CBDCs and have issued guidelines to help countries begin implementing the technology in their economies, despite low public interest.
Regulators believe that CBDCs are necessary to curb the proliferation of private digital currencies, which pose an existential threat to central bank funds as they become more attractive to ordinary people. #西班牙 #CBDC