The new programme will focus on a wholesale CBDC, which is an asset that is used for interbank transactions rather than retail or consumer transactions. It’s worth noting that the programme has no relation to the work that is currently being carried out by the Eurosystem as part of its research on a retail CBDC, namely the digital euro.
This endeavour is an exclusive initiative of the Banco de España which acknowledges the actual potential of w-CBDCs in accordance with the current state of technology and its expected evolution. According to bitrates.com, the Bank of Spain implied that its CBDC programme will leverage blockchain or similar ledger technology.
As for the project roadmap, it will involve simulating a CBDC, integrating it with the liquidation of assets, and analysing the digital asset’s pros and cons in the context of traditional processes, procedures, and infrastructures. Applications for the program will be accepted until 31 January 2023. Organisations that are interested in being part of this programme will need to meet certain minimum requirements and can submit their proposals via Banco de España’s Electronic Register.
Following the submission deadline, the Bank of Spain will review and assess applications according to the established criteria. According to bde.es, the bank might also hold a series of interviews with shortlisted candidates before arriving at a final decision. A precondition for the final selection might involve executing projects partially or having them combined with one another.
In November 2022, Payment service company Iberpay has joined 29 banks to launch a digital euro proof of concept in relation to the possible issuance of a CBDC. Apart from Iberpay, banks such as BBVA, Sabadell, Santander, ING, and Deutsche Bank took part in the proof-of-concept trials, joined by payment services organisations Bizum and Redsys.
The Spanish banks are analysing how a retail CBDC would be included in the current payment infrastructures, including processors, banks, and offerings such as the local instant payment system Bizum.
In the same month, the Reserve Bank of India (RBI) has started to prepare the rollout of a retail digital rupee pilot following a testing phase of the wholesale usage of its CBDC. India, which is primarily cash-focused, is joining nations such as China in pushing forward with digital versions of their currencies.
Other countries that have developed digital currencies include the Bahamas with its Sand Dollar, as well as Sweden with its E-krona.
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