A new one is joining the CBDC! Look which country. The Bank of Spain is seeking the support of groups interested in participating in a trial run on a central bank digital currency (CBDC). The company explained that this new program has nothing to do with the ongoing research on the possible digital euro, and aims to assess the possibilities and real benefits of using CBDC in the field.
The Bank of Spain will test its own CBDC
The Bank of Spain recently revealed that it will launch its own pilot program with a large CBDC. The book was published in December. 5 announces this program of digital signage, and explains that the company is looking for the support of companies in the area, which will be able to develop their plans on this topic.
The company explained that this program has nothing to do with the European Union’s ongoing efforts to demand a digital euro. The purpose of this new program is to find out if it is possible to use such money and to test the benefits it can bring to the planning process.
The bank will receive these proposals until January 31, when the bank will begin to evaluate each of the proposals for selection. Selected projects must be completed within a maximum of nine months, beginning April 3, with plans scheduled to be completed by December 29, 2023. However, banks can offer extensions based on several factors, according to the option document.
Cash in bulk
Although many of the experiments and tests that are carried out today in the field of CBDC include the number of currencies for global use, the Bank of Spain is also interested in wholesale currencies, intended to facilitate the settlement of financial transactions among banking institutions.
The program described in the public document that describes the experiment provides three main tasks to be completed: the simulation of transactions using CBDC in bulk, the test of the combination of CBDC and the liquidation of assets money, and an analysis of possible benefits. and the disadvantages arising from the implementation of CBDC in general compared to traditional methods.
The company did not provide other details about the future of the currency expected in Spain, or the intention to set up a similar currency for interbank transactions.