Spain Bank chooses partners to implement CBDC testing

After a year-long open call for partners to participate in central bank digital currency (CBDC) tests, Spain's central bank, Banco de España, has announced its collaborators. The resolution, published on January 3, reveals partnerships with Cecabank, Abanca, and Adhara Blockchain.

Over the next six months, the wholesale CBDC pilot will simulate the processing and settlement of interbank payments using a single tokenized wholesale CBDC. Additionally, the experiment will involve the exchange of several wholesale CBDCs issued by different central banks. Another aspect of the trial, in collaboration with the Cecabank-Abanca consortium, will utilize the wholesale CBDC to settle a simulated tokenized bond.

The central bank selected three companies from the 24 applications received during the past year. While Cecabank and Abanca are Spanish entities, Adhara Blockchain is headquartered in the United Kingdom.

This Spanish CBDC initiative is distinct as it is explicitly independent of the digital euro project, which would encompass all economies in the eurozone if implemented. Concurrently, the Spanish Ministry of Economic Affairs and Digital Transformation declared its intention to implement the European Union's Markets in Crypto-Assets Regulation six months ahead of the deadline.

In October, the Bank of Spain detailed the nature and applications of the digital euro. Despite this development, a survey in October revealed that 65% of respondents in Spain expressed disinterest in using the pan-European CBDC to supplement their regular payment methods.