Spain's Central Bank Collaborates with Cecabank, Abanca, and Adhara Blockchain for CBDC Tests
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Modified on: Fri, 5 Jan, 2024 at 11:33 PM
Spain's central bank, Banco de España, has announced its collaboration with Cecabank, Abanca, and Adhara Blockchain for central bank digital currency (CBDC) tests. The pilot for the wholesale CBDC is set to take place over the next six months, involving the simulation of interbank payment processing and settlement using a tokenized wholesale CBDC. The experiment will also include the exchange of several wholesale CBDCs issued by different central banks. The Cecabank-Abanca consortium will use the wholesale CBDC to settle a simulated tokenized bond. Three companies were chosen from 24 applications received over the past year. While Cecabank and Abanca are Spanish, Adhara Blockchain is based in the United Kingdom. The Spanish CBDC program is unique and independent of the digital euro project, covering all economies in the eurozone.
Key Points:
Collaboration for CBDC Tests: Banco de España, Spain's central bank, has selected Cecabank, Abanca, and Adhara Blockchain as collaborators for central bank digital currency (CBDC) tests.
Wholesale CBDC Pilot: The pilot program for the wholesale CBDC will span six months, involving the simulation of the processing and settlement of interbank payments using a single tokenized wholesale CBDC. Multiple wholesale CBDCs issued by different central banks will be exchanged.
Simulated Tokenized Bond: The Cecabank-Abanca consortium will utilize the wholesale CBDC to settle a simulated tokenized bond as part of the experiment.
Selection from 24 Applications: The central bank chose the three collaborators from 24 applications received over the past year.
Digital Euro Project Independence: Spain's CBDC program is unique and independent of the digital euro project, which would cover all economies in the eurozone if implemented.
European Union's Crypto-Assets Regulation: The Spanish Ministry of Economic Affairs and Digital Transformation announced the implementation of the European Union's Markets in Crypto-Assets Regulation six months before the deadline.
Survey on Digital Euro: In a survey conducted in October, 65% of respondents expressed that they would not use the pan-European CBDC to complement their regular payment methods.
Conclusion: Banco de España has partnered with Cecabank, Abanca, and Adhara Blockchain for central bank digital currency (CBDC) tests, with a six-month pilot program for the wholesale CBDC. The collaboration involves simulating the processing and settlement of interbank payments using tokenized wholesale CBDCs and exchanging them across different central banks. The selection of collaborators from 24 applications highlights the interest in CBDC experimentation. The Spanish CBDC program is distinct and independent of the digital euro project, and the implementation of the European Union's Markets in Crypto-Assets Regulation is set to precede the deadline.
(DAVID ATTLEE, COINTELEGRAPH, 2023)
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