The Bank of Spain is looking for organizations that want to participate in an experimental program for a wholesale central bank digital currency (CBDC). According to a December 5 statement, the bank will focus on three main areas: the program will simulate fund movement, experiment with financial asset liquidation, and assess the benefits and drawbacks of introducing a wholesale CBDC to its current processes and infrastructure.
The institution is also seeking the collaboration of industry companies that will be able to develop project proposals. The study, according to the Bank, will help determine how well it can adapt to the “needs and demands of an increasingly digital society.”
In contrast to a retail CBDC, which is available to the general public, a wholesale CBDC is a digital currency used by a bank to keep reserves at a central bank. The bank also stated that the wholesale CBDC program is unrelated to the European Union’s current research into a retail digital euro.
The Central Bank stated that the goal of its new venture is to determine the viability of using such a currency and to test the benefits that it may have to offer the settlement process.
The bank will accept proposals until January 31, 2023, at which point it will begin evaluating each one for potential selection. Selected proposals must be completed in no more than nine months, beginning on April 3, and are expected to be completed by December 29, 2023. However, the bank has stated that an extension may be granted depending on several factors.
