all about cryptop referances
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.
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.
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.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.
