Bank of Spain Launches Experimental Wholesale CBDC Digital Token Program – Blockchain Bitcoin News

The Bank of Spain is seeking cooperation with organizations interested in participating in an experimental test of a wholesale digital currency for central banks (CBDC). The institution clarified that this new program has no connection with the current investigation of a possible digital euro, and aims to investigate the real possibilities and benefits of using a CBDC in the field.

Bank of Spain to experiment with its own CBDC

The Bank of Spain has recently revealed that it will launch its own experimental program with a wholesale CBDC. A document issued on December 5 announces this digital token program, and explains that the institution is seeking cooperation from companies in the industry, who will be able to formulate their proposals on this matter.

The institution clarified that this program has no relation to ongoing efforts from the EU on research into the digital euro. The aim of this new program is to find out if it is possible to use such a currency and to test the benefits it can bring to the settlement process.

These proposals will be received by the bank until 31 January, when the bank will begin to assess each of the proposals for possible selection. The selected proposals will have to be implemented for a period of no more than nine months, starting on April 3, with completion estimated on December 29, 2023. However, the bank will be able to grant an extension depending on several factors, according to the selection process document.

Wholesale currency

While most of the experiments and trials being run today in the CBDC field involve the figure of a universal currency, the Bank of Spain is also interested in a wholesale currency, aimed at assisting in the settlement of financial transactions between banking institutions.

The program defined in the public document describing the experiments provides three key tasks to be completed: simulation of transactions using wholesale CBDC, experimentation with the combination of CBDC and settlement of financial assets, and analysis of possible advantages and disadvantages derived from the implementation of a wholesale -CBDC compared to traditional methods.

The institution did not provide more details about the future of a hypothetical wholesale currency in Spain, or about the intention to implement a similar currency for interbank transactions.

What do you think of the wholesale CBDC trials that the Bank of Spain will conduct next year? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price spike occurred during December 2017. He has a computer engineering background, lives in Venezuela and is influenced by the cryptocurrency boom on a social level, offering a different point of view on crypto success and how it helps the unbanked and underserved.

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