The Central bank of Spain has announced its strategic plan for four years with studying and launching a potential CBDC one of the five points of the plan.
In its statement, the financial house said that the major objectives of the strategic plan were to ensure a boost in the country’s economy. Furthermore, the bank said that it was going to use the strategic plan to open the country’s financial institutions to the requirements of the modern era.
To make this achievable, the bank is going to study the Central Bank Digital Currency (CBDC) within these four years. This one move means that Spain is getting ready to embrace the digital world.
Spain aims to look into the creation of digital currency
In the analysis titled, Analysis and Research priorities for Banco de Espana: 2020-2024, the bank said it was going to prioritize the creation of a CBDC. To make this achievable, the bank said it would start to look at the legal, financial and technology framework involved in the creation of the CBDC.
In its statement, the bank said that one of the main reason why it was looking into the CBDC was to create an efficient banking and payment system.
Taking to Twitter to share the news, the bank said, Publicamos las prioridades de análisis e investigación del @BancoDeEspana para 2020-2024 en el contexto de Nuestro #PlanEstratégico.”
In one chapter of the report that talked about new technologies, the bank admitted that it had posed a huge challenge for banks; more reason why FinTech firms recorded massive growths in the last few years.
Going further, the bank said there is a need to always provide solutions to tough processes as that’s what the society wants. Looking into the prospect of creating a potential CBDC is one of the highlights of the “new technologies” mentioned in the book.
Spain joins major countries competing to launch the CBDC
In the report, the bank stated that digital currencies possess good potentials as they can be used to ease payments in the banking system. “Also, the use of these technologies can improve services the central bank provides, such as those relating to payment means, allowing for possibilities such as the introduction of digital currency, whose implications and design should be analyzed in-depth”, the bank said.
Meanwhile, reports in Spain claim that firms are looking to explore blockchain technology beyond the use of payments. A typical example is Telefonica, a private company who owns the largest blockchain across the country.
It is no news that Spain is not the first country looking to create a potential CBDC, with countries across the world interested in towing that path. President of the European Central Bank, Christine Lagarde has shown interest in the creation of digital currency with the use of blockchain technology.
Many blockchain analysts have considered this move as a good one and a silent ploy to upstage China and some other major countries looking to launch their CBDC. Although a clear plan has not been drawn out on the way that Spain is planning to carry out its research, a Spanish digital currency would be an exciting prospect in the future.