Spain’s Central Bank Initiates Wholesale CBDC Pilot Initiative

• Out of 24 applications received by the central bank in the last year, three were selected. 
• The Spanish CBDC initiative is separate from the digital euro project.

Banco de Espana, the central bank of Spain, has selected its partners for the central bank digital currency (CBDC) trials, which were announced a year ago. A resolution announcing the collaboration with Cecabank, Abanca, and Adhara Blockchain was released on January 3rd by the central bank.

The following six months will be devoted to the wholesale CBDC pilot, which will simulate the handling and finalization of interbank payments using a single tokenized wholesale CBDC and by trading multiple wholesale CBDCs issued by several central banks.

Distinct from Digital Euro

Part two of the project involving the Cecabank-Abanca collaboration involves settling a tokenized bond using wholesale CBDC. Out of twenty-four applications received by the central bank in the last year, three were selected. Adhara Blockchain is based in the UK, but Cecabank and Abanca are both Spanish.

It has been openly stated that the Spanish CBDC initiative is separate from the digital euro project, which, if realized, would include all economies in the Eurozone. This sets it apart from other programs. Separately, six months before the deadline, the Spanish Ministry of Economic Affairs and Digital Transformation said that it will execute the EU’s Markets in Crypto-Assets Regulation.

A document outlining the characteristics and applications of the digital euro was issued in October by the Bank of Spain. Even among Spaniards, enthusiasm for the digital euro has been low. In an October study, 65% of people said they wouldn’t utilize the pan-European CBDC in addition to their current payment options.

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