- Central Bank of Spain will prioritize the creation and study of a CBDC
- Central Bank of Spain describes the change in the financial system as a challenge for banks
- Chinese commercial banks have tested a CBDC-linked digital wallet
Cryptocurrency News Today – Spain’s new Strategic Plan for the next four years (2020-2024) includes five priorities. Studying CBDCs is one of these priorities. The Central Bank of Spain has just published its Strategic Plan for the next four years, describing its objectives.
The plan also highlights the strategies that it will follow to improve its economy and ensure that the country’s finances adapt to the modern era. Hence, having a CBDC is a key priority. The digital space has reached the attention of Spaniards. In its strategic plan, the Central Bank remarked that it will prioritize the study of the technological, legal, and financial implications of issuing a CBDC. The ultimate goal is to optimize the efficiency of banking.
The Change in the Financial System is a Challenge for Spanish Banks
The Central Bank of Spain regards these innovations as challenging for commercial banks (no wonder fintech grew very much recently). However, it emphasizes the need to bring new solutions as society demands for a more efficient process. The development of a CBDC falls within the new technologies. The report shows optimism on the potential of a CBDC:
“The use of such technologies can improve the services that the central bank of Spain offers. Especially those relating to the payment. This will allow for possibilities like the introduction of a Central Bank-backed digital currency, with a design that will be analyzed in depth.”
There’s a strong movement for the use of Blockchain technology beyond token speculation in the country. Take an example, Telefonica (a top telecom corporation in Spain) deployed the biggest private Blockchain network in the country. The Alastria association recently developed multiple Blockchain apps for digital identity, enterprise solutions, and supply chain tracking. Several regional universities have started to use Blockchain technology to fight academic fraud.
Chinese Commercial Banks Have Tested A CBDC-Linked Digital Wallet
Taking this to heart, we shouldn’t be surprised that the Central Bank of Spain regards having a CBDC as their number one priority. The Bank did not give a lot of details about the CBDC. However, it will certainly consider various technological options while building a solution. The implications for such a financial system on the economy as a whole (considering the introduction of a central bank-backed digital currency) will be critically analyzed. The developers will consider various design proposals. It will include aspects of digital identification.
This shift in interest could be a reaction to the current global geopolitical landscape. Christine Lagarde, former president of the International Monetary Fund and the president of the Central Bank of Europe has expressed interest in a Digital Euro. She hasn’t ruled out using Blockchain technology to develop it.