Almost all Central banks have all looked into the idea of a Central Bank Digital Currency, and some are already close to launching their respective digital currencies. Spain’s central bank the Banco de España is the latest to announce its plans for a state-backed currency, and it is looking to focus on design proposals for a central bank digital currency over the next few years.
In its strategic plan that discusses the bank’s roadmap for 2020 to 2024, the bank said it would analyze the European Central Bank’s (ECB) policies and trends within the Spanish economy, while also exploring a CBDC.
The plan primarily focuses on important agendas like studying the effect of negative interest rates on banks, COVID-related stresses on markets, and other issues that need to be addressed. There is not much detail regarding its CBDC plans, but the report notes that CBDC research is a priority under the theme of “New technologies and Information Sources.”
A part of the plan reads:
“The implications for the financial system and the economy as a whole of the introduction of a central bank digital currency will be analysed, considering various design proposals and including aspects relating to digital identification.”
Digital Peseta unlikely
Spain doesn’t issue its native currency the peseta and has been using the euro since 2002 as a part of the Eurosystem. Hence, it is unlikely that a digital version of the peseta is coming to the market.
Back in 2017, when the Mario Draghi headed the ECB as its president, he was strongly opposing Estonia’s idea of issuing a CBDC stating that “No member state can introduce its own currency.” “The currency of the eurozone is the euro,” he said. This followed with the Estonian government denied ever having plans to issue “estcoin.”
But things are different now, under the leadership of Christine Lagarde, the ECB has been more open towards digital currencies and has even trademarked the “digital euro.”
As previously reported by The Daily Chain, the ECB recently published a report about the digital euro, stating that the central bank needs to be prepared for a time when a CBDC becomes necessary. But that is for the digital euro and the digital peseta remains an unlikely venture.
However, Juan Ayuso Huertas, the Director-General of Banco de España, is quite active regarding these next-gen technologies. He is a member of the High-Level Task Force on Central Bank Digital Currency, which produced the digital euro report.
A report titled “An Introduction to the Current Debate on Central Bank Digital Currency” was also published earlier this year, authored by Ayuso and Carlos Conesa, an associate director at the central bank.