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

The "priority" research comes as Spain weighs a global pivot to digital economies.

AccessTimeIconOct 16, 2020 at 6:26 p.m. UTC
Updated Sep 14, 2021 at 10:10 a.m. UTC

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.

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