Spain Central Bank Releases Strategic Plan For Digital Currency

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Banco de Espana (Courtesy: Twitter)
Banco de Espana (Courtesy: Twitter)

Banco de España, Spain’s central bank released its strategic plan from 2020 to 2024, which outlines its priorities over the next four years.

In addition to analyzing the European Central Bank’s policies and trends within the Spanish economy, Bank of Spain will look into a central bank digital currency (CBDC).

The plan—which also says it will study the effect of negative interest rates on banks, COVID-related stresses on markets, and several other areas—does not go into much detail on its CBDC efforts. However, it contends that CBDC research is a priority under the theme of “New technologies and Information Sources.”

The plan states: “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.”

Spain doesn’t issue its own currency—as a member of the Eurosystem, it’s been using the euro since 2002, when it cycled out the Spanish peseta. And it’s unlikely that the bank is curious about issuing a digital peseta.