bank-of-spain-to-weigh-digital-currency-design-proposals,-‘implications’-through-2021

Bank of Spain to Weigh Digital Currency Design Proposals, ‘Implications’ Through 2021

Bank of Spain to Weigh Digital Currency Design Proposals, ‘Implications’ Through 2021

Spain’s central bank is fast-tracking research on digital currency ‘s design and the economic implications of central bank digital currency (CBDC) introduction as per a four-year strategic plan released Friday.

  • CBDC researchers will “consider different design proposals” and analyze digital currency’s financial and systemic risks for Spain.
  • They will also study how “digital identification” relates to CBDC, the plan said.
  • This “priority” research will begin this year and carry through the end of 2021.
  • A member of the eurozone, the Bank of Spain cannot unilaterally introduce its own sovereign CBDC.
  • However, the European Central Bank is currently mulling a digital euro through committee work that includes Spanish central bankers. The future of that work will be determined in mid-2021.