Spanish central bank finalizes partners for wholesale CBDC pilot Spanish central bank finalizes partners for wholesale CBDC pilot
The six-month pilot program will simulate interbank payment processing and settlement using a single tokenized wholesale CBDC and other foreign CBDCs issued by different central banks.
2 min read
Updated: Jan. 5, 2024 at 5:02 pm UTC
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The Bank of Spain’s selection of Cecabank, Abanca, and Adhara Blockchain for its wholesale central bank digital currency (CBDC) pilot is a strategic move towards exploring the benefits and feasibility of digital currencies in the banking sector, according to a Jan. 3 release.
The six-month pilot program will simulate interbank payment processing and settlement using a single tokenized wholesale CBDC and other foreign CBDCs issued by different central banks.
The partners
The inclusion of the three partners was said to be the result of an extensive selection process.
Cecabank and Abanca are prominent Spanish banks, bringing local financial expertise to the project. Adhara Blockchain, a U.K.-based company, contributes its global experience in blockchain technology, having previously worked with central banks in other countries on digital currency exploration. The collaboration of these entities combines a blend of local knowledge and international technological expertise.
A significant aspect of the experiment is using the simulated wholesale CBDC to settle a tokenized bond conducted by the Cecabank-Abanca consortium. This part of the pilot will provide valuable insights into the practical applications of CBDCs in complex financial operations.
The pilot program by the Bank of Spain stands independently from the digital euro project aimed at the entire Eurozone. It focuses specifically on the digitization of interbank wholesale payments rather than creating a universal digital currency for public use.
Public uninterested
However, public interest and acceptance are crucial in the broader adoption of digital currencies.
Surveys conducted in Spain have indicated a tepid response from the public regarding using a digital euro. In October, a survey revealed that 65% of respondents in Spain were not inclined to use a pan-European CBDC alongside their regular payment methods.
The data suggested that while financial institutions and central banks are keen on exploring digital currencies, significant work remains to be done regarding public outreach and education to increase acceptance and understanding of these new financial technologies.
International regulators like the IMF and the Bank for International Settlements are bullish on the idea of CBDCs and have issued guidelines to help countries begin implementing the technology into their economies despite the lukewarm public interest.
Regulators believe CBDCs are necessary to counteract the proliferation of private digital currencies, which pose an existential threat to central bank money as they become increasingly attractive to the general populace.
Author 
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
Editor Editor 
Liam 'Akiba' Wright
Also known as "Akiba," Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
