Bank of Spain looking into the implications of CBDC

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  • Banco de España has released a strategic plan from 2020 to 2024 to outline its goals for the next four years.
  • The ECB had recently published a report on the potential impact of a digital euro.

Spain’s central bank, Banco de España, has recently released its strategic plan from 2020 to 2024, outlining its goals for the next four years. Along with analyzing the impact of the European Central Bank’s policies and trends, the bank will be looking into a potential central bank digital currency (CBDC) implementation. The central bank will also study the effects of negative interest rates, COVID-related stresses on markets, etc.

Not much info on CBDCs

While the plan doesn’t delve much into potential CBDC efforts, it does mention that research into it is a priority under the theme of “New technologies and Information Sources.” As per the plan:

The implications for the financial system and the economy as a whole of the introduction of a central bank digital currency will be analyzed, considering various design proposals and including aspects relating to digital identification.

Pablo Hernández de Cos, the governor of the Central bank, said about CBDC implementaion: 

Regardless of its importance, expanding access to a Central Bank’s balance sheet by making a CBDC available to households & non-financial corporations is only one of many ways in which tech innovation may help enhance the monetary & payment system.

Spain and Euro

Spain has been a part of the Eurosystem since 2002, meaning it doesn’t issue its own currency. The European Central Bank, led by Christine Lagarde, has been actively researching a digital euro. In fact, the ECB has recently published a comprehensive report on the potential impact of a CBDC.
 

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