Spain Tests CBDC To Simulate Interbank Payments

Central Bank of Spain conducted a CBDC test. (Photo; Doc. Eurodicas)

JAKARTA - Spain is one of the countries interested in developing a central bank digital currency (CBDC). The Spanish central bank, Banco de Espamen, has selected three partners to conduct a CBDC trial for the next six months. This trial will simulate interbank payments and settlements using CBDC.

Banco de Espamen announced that local banks of Cecabank and Abanca, as well as British blockchain company Adhara Blockchain, have been selected from 24 registrants to collaborate on the project. The consortium will use simulated wholesale CBDC to complete the payment of tokenized bonds as part of the trial.

The purpose of this trial is to test the potential and challenges of using CBDC in the interbank payment system. This trial will also explore scenarios where there is a single CBDC or multiple CBDCs published by different central banks.

Spain's Preparations For Digital Euro

This Spanish wholesale CBDC trial is different from the digital euro project under study by the European Central Bank (ECB). Digital Euros are retail CBDCs that will cover all member states of the euro zone if implemented. Digital euros aim to create a wide-based digital currency that can be used by the European people.

Spain seems committed to preparing for future digital euro adoption. Banco de Espamen have released material that explains the potential use and economic impact of the digital euro. However, this material did not cause much enthusiasm among the Spanish people.

According to a survey conducted by Banco de Espamen in 2023, 65% of respondents stated that they would not use digital euros alongside their regular payment method if CBDCs were already available. This suggests there are obstacles to the general public's adoption of CBDCs.

One of the obstacles that must be faced by the Central Bank of Spain is overcoming public skepticism and integrating CBDC into existing payment systems. However, it is not yet known for sure when the Central Bank of Spain will release CBDC on a large scale to the public.