The Bank of Spain (BDE) announced on Monday that it intends to launch a wholesale central bank digital currency (CBDC) project and that financial institutions and technology vendors should submit proposals for the project by January 31.
According to the statement, the program will focus on three key areas:
- Simulating fund movement.
- Experimenting with financial asset liquidation.
- Analyzing the benefits and drawbacks of introducing a wholesale CBDC to the bank’s current processes and infrastructure.
The Spanish apex bank claimed that the program is exclusive to the BDE and has nothing to do with the European Union’s research into the usage of a digital euro.
According to the BDE’s motivation for launching the program, the research of CBDCs can help assess how much they can contribute to adjusting to the needs and demands of an increasingly digital society.
Additionally, it was mentioned that CBDCs are being explored and tested in a few countries, primarily for retail applications; however, more businesses are looking into CBDCs for wholesale or interbank applications.
Since the Bank of China began testing its e-CNY in April 2020, the e-currency is now the most widely used CBDC in the world, having completed transactions totaling $14 billion during its pilot phase.
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