Bank of Spain Collaborates with Cecabank, Abanca, and Adhara Blockchain for CBDC Tests

cryptonews.com:

Spain’s central bank, Banco de España, has revealed its selected collaborators for the testing phase of the central bank digital currency (CBDC) initiative, a year after issuing a call for collaboration.

Out of 24 applications received over the past year, Bank of Spain has chosen three collaborators. The resolution, published on January 3, disclosed partnerships with Cecabank, Abanca, and Adhara Blockchain for the upcoming six-month pilot of the wholesale CBDC. Cecabank and Abanca are Spanish entities, while Adhara Blockchain is headquartered in the United Kingdom.

The testing phase will involve simulating the processing and settlement of interbank payments using a single tokenized wholesale CBDC. It will also explore the exchange of various wholesale CBDCs issued by different central banks. The consortium of Cecabank and Abanca will use the wholesale CBDC to settle a simulated tokenized bond as part of the experiment.

It’s important to note that the Spanish CBDC program is distinct from the digital euro project, which would cover all economies in the eurozone if implemented.

Spain has been actively engaging with the cryptocurrency market, with recent efforts to implement the European Union’s Markets in Crypto-Assets Regulation (MiCAR) and provide insights into the characteristics and potential applications of the digital euro.

In October, the Bank of Spain published a text explaining the nature and uses of the digital euro. The bank claimed that the physical cash format “does not allow for the exploitation of all the advantages offered by the growing digitalization of the economy and society.” However, the digital euro will make electronic payments a vital piece of the financial system.

The European Central Bank (ECB) also