The Bank of Spain said the study would help determine in what degree it can adapt to the “needs and demands of an increasingly digital society,” according to the bank of Spain.
Spain’s central bank, the Bank of Spain (BDE), announced that it intends to launch an experimental program to begin testing wholesale Central Bank Digital Currencies (CDBCs) and is seeking proposals from local finance and technology organizations.
the bank will concentrate on three main areas of the program, which is intended to simulate the movement of funds, experiment with the liquidation of financial assets, and assess the benefits and drawbacks of including a wholesale CBDC in its current processes and infrastructure, according to a translated Dec.5, statement.
A wholesale CBDC is a digital currency used by banks to hold reserves with a central bank, as opposed to a retail or general-purpose CBDC that is open to the public.
The scheme is “exclusive” to the BDE, and it states that it is unrelated to research being conducted in the European Union on the use of a digital euro.
Interested parties must meet the minimum requirements set by the bank in order to participate in the program, and they must also provide the economic means they are willing to commit to the project in an application process which closes in January.31, 2023.
The study of CBDCs can help determine to what extent they can contribute to adapting to the needs and demands of an increasingly digital society.
CBDCs are being “analyzed and tested” on in a variety of jurisdictions, mainly focusing on a retail use, according to Brad Jones, the Assistant Governor of the Reserve Bank of Australia (RBA), according to Brad Jones.
At a central bank conference, 8 said that a retail CBDC could result in people avoiding commercial banks completely and potentially displace the Australian dollar, according to a central bank conference.
The trial of the Australian dollar by the Reserve Bank of Australia was released in August. 9,
Over 80 financial entities have proposed use cases according to Jones, but banks could face issues if a CBDC becomes the preferred source of holdings.
The Bank of Thailand is planning to launch a pilot of a retail CBDC before the end of 2022, with a testing environment limited to 10,000 people.
The Bank of China launched the first trial of its e-CNY in April 2020 and has marked 14 billion transactions since.
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